European Stocks Extend Two-Month High as Germany’s DAX RalliesSofia Horta e Costa
European stocks rose, extending a two-month high as German equities posted their longest winning streak since May 2013.
The Stoxx Europe 600 Index gained 0.2 percent to 346.28 at the close of trading, after earlier rising as much as 0.6 percent. The DAX Index climbed 0.8 percent, sending its nine-day gain to 7.1 percent amid growing optimism that the nation’s exporters will benefit from a weaker euro as the European Central Bank looks into broadening its asset-buying program.
“I’m pretty satisfied that the market has recovered to the extent it did,” said Michael Woischneck, who helps manage 6.2 billion euros ($7.7 billion) at Lampe Asset Management in Dusseldorf, Germany, referring to the German index. “The few hiccups and disappointments in the economy did not justify a plunge of 1,500 points for the DAX. The rebound is all about the support from central banks. The market is focusing more on that than on corporate news.”
A rebound of 15 percent from a one-year low in October has pushed the DAX to its highest level since July.
The Stoxx 600 has rallied 12 percent from its low last month as Mario Draghi said the ECB may start buying buying government bonds and China cut benchmark interest rates.
Equities pared gains after a report showed consumer confidence in the U.S. unexpectedly fell in November. Earlier, they briefly extended their rally after data showed the world’s largest economy expanded 3.9 percent in the third quarter, faster than the initial estimate and economists’ projections.
An index of banks contributed the most to the Stoxx 600 advance today. HSBC Holdings Plc added 1.3 percent and Societe Generale SA rose 1.8 percent. The lenders retained their positions on UBS AG’s list of most-preferred European bank stocks. Deutsche Bank AG increased 1.9 percent.
ING Groep NV rose 1.4 percent after saying it will cut 1,700 jobs in the next three years and book a 320 million euro ($398 million) provision in the fourth quarter.
IG Group Holdings Plc climbed 3.2 percent to the highest price since its initial public offering in 2005. The British spread-betting firm said that sales for the quarter ending Dec. 1 will rise to a record as client activity increased.
Commodity and energy producers fell. BHP Billiton Ltd., the world’s largest mining company, lost 1.7 percent, and Anglo American Plc declined 1.8 percent. Total SA dropped 1.6 percent, and BP Plc declined 1.1 percent.
Kingfisher Plc slid 4.1 percent after the home-improvement retailer said sales in France, its largest market, slumped 9.3 percent in the 13 weeks through Nov. 1.