European Stocks' Three-Month High as Euro Drops Puts Onus on ECB
- Turkish lira rallies as EU agrees aid package for refugees
- Singapore iron-ore futures trade below $40 for first time
European stocks hovered around a three-month high, the euro touched its weakest level since April and the yield gap between German and U.S. notes reached the widest in nine years as traders prepared for the European Central Bank to ramp up stimulus later this week.
The euro headed for its worst month versus the dollar since March with economists surveyed by Bloomberg unanimously predicting the ECB, led by President Mario Draghi, will take additional steps to boost inflation. The lira advanced after Turkey and the European Union agreed on measures to counter terrorism and help stem a refugee crisis, backed by EU aid. While carmakers led gains in Europe stocks, miners fell as shares in BHP Billiton Ltd. dropped to the lowest since November 2008 after iron ore futures in Singapore sank below $40 a metric ton for the first time.