Europe Stocks Rise for a 3rd Day as FTSE 100 Enters Bull Marketby and
Shares extend gain as Theresa May set to become prime minister
LafargeHolcim climbs after agreeing to sell India unit
European equities extended a rebound into a third day as concern eased about global economic prospects in the aftermath of the Brexit vote.
The Stoxx Europe 600 Index closed 1.6 percent higher, with all 19 industry groups up. The U.K.’s FTSE 100 Index entered a bull market after today’s rise of 1.4 percent took its gains since a February low to 21 percent. Stocks extended an advance after Andrea Leadsom withdrew her candidacy and cleared the way for Home Secretary Theresa May, who is set to succeed David Cameron as the next prime minister on Wednesday.
Commodity producers led the advance today, with data showing China’s factory-gate deflation eased for a sixth straight month. Investor outlook for the U.S. economy improved after Friday’s report showing a jump in payrolls, while in Japan, Prime Minister Shinzo Abe’s ruling coalition won an election Sunday, giving him a fresh mandate to unleash stimulus measures.
“We had good news globally,” said Christian Gattiker, head of research at Julius Baer Group Ltd. in Zurich. “A lot of things are now meeting a very cautious European investor and make life not easy, but less threatening than just a week or two weeks ago.”
Equities are rebounding after sliding early last week amid concern over the strength of the Italian banking system and the impact of the U.K.’s vote to leave the European Union. Stoxx 600 lenders sank on July 6 to their lowest levels since 2011, insurers fell to an almost three-year low, and property-related stocks in Britain tumbled as several funds suspended withdrawals. The Stoxx 600 is still below its June 23 level and 9.1 percent down for the year.
Anglo American Plc and Glencore Plc rallied more than 6 percent, pushing a gauge of miners to its highest close since April.
Among stocks active on corporate news, LafargeHolcim Ltd. rose 4.4 percent after agreeing to sell an Indian building-materials business to Nirma Ltd. for an enterprise value of about $1.4 billion. Airbus Group SE gained 2.4 percent after people familiar with the matter said it’s poised to win an order for as many as 100 jets from AirAsia Bhd.
Cerillion Plc jumped 7.4 percent after the software provider said it secured a contract worth an initial 2.1 million pounds ($2.7 million) from a telecommunications company.