Europe Stocks Rise After Longest Run of Daily Swings Since 2013by
A rally in commodity producers helped European equities erase declines, sending the shares for their longest streak of intraday fluctuations in more than three years.
The Stoxx Europe 600 Index climbed 0.3 percent, reversing a slide of as much as 0.8 percent. Royal Dutch Shell Plc and Glencore Plc climbed more than 2 percent as commodities advanced. That marks a 10th day of the gauge alternating between intraday advances and losses, its longest streak since May 2013.
European stocks have been trading in a tight range most of the year and remain below their level from before the U.K. secession referendum. The Stoxx 600 failed to maintain its momentum after Donald Trump’s election boosted speculation for infrastructure spending. Investors are turning their focus to the region’s political risks ahead, while the recent rise in government-bond yields is making equities less attractive, according to Peter Dixon, an economist at Commerzbank AG in London.
“I get that sense from looking at our own trading floor that it’s a bit of a quiet period in which we have time to reflect about some of the risks out there,” he said. “The Italian referendum in two weeks’ time and concern about the future of ECB policy are starting to rise in people’s agenda. Equities look pricey when you consider the risks ahead.”
On Monday, the volume of Stoxx 600 shares changing hands was about 18 percent lower than the 30-day average. Among stocks moving on corporate news, Mitie Group Plc, which provides office cleaners, tumbled 9.5 percent after saying it sees earnings below a previous forecast. Essentra Plc sank 20 percent after the U.K. maker of plastic caps cut its operating profit forecast.