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European Shares Rise as Euro Falls, Investors Weigh Fed Talk

  • Fed’s Harker, Williams see two to three rate rises this year
  • Euro falls as prospect of higher U.S. rates boosts dollar
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European Shares Jump the Most in Six Weeks as Euro Falls

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European stocks jumped the most in six weeks as the euro slid and investors assessed the implications of a possible Federal Reserve interest rate increase as early as June.

The Stoxx 600 added 2.2 percent to 344.12 at the close of trading. All industry groups climbed, with insurers and banks leading. The euro has dropped close to a two-month low against the dollar amid an increasing probability of higher borrowing costs in the U.S. this year, favoring European companies that export overseas. The region’s firms generate about half their sales abroad, more than the U.S. and Japan, according to Morgan Stanley.