Gains in Banks, Drugmakers Lift Europe Stocks by Most in a Monthby
European stocks rose, eking out a third weekly advance, as banks rallied after fourth-quarter earnings from U.S. lenders, while carmakers and health-care shares bounced back from their biggest declines in months.
The Stoxx Europe 600 Index gained 1 percent at the close. Banks in the gauge rose 2 percent after better-than-forecast profit at JPMorgan Chase & Co. spurred optimism for the earnings season. Carmakers recovered after tumbling the most since July yesterday on U.S. government accusations that Fiat Chrysler Automobiles NV violated pollution laws. Health-care shares climbed, halting a two-day decline prompted by concern over price pressures under Donald Trump’s U.S. presidency.
- The rebound in the Stoxx 600 helped erase a weekly decline, with the gauge ending 0.1 percent higher for the period.
- The U.K.’s FTSE 100 Index completed 14 straight daily gains, extending a record winning streak, as well as an 12th consecutive record close.
- Fiat Chrysler jumped 4.6 percent after yesterday’s 16 percent plunge as Chief Executive Officer Sergio Marchionne dismissed the U.S. allegations as “unadulterated hogwash.” The carmaker is under investigation by the U.S. Justice Department over its alleged failure to disclose software that violated emissions standards, Bloomberg News reported after European markets closed, citing people familiar with the matter.
- Traders are more optimistic than analysts on Euro Stoxx 50 Index dividends for this year. Futures contracts are pricing in a 2017 payout about 0.5 point higher than the Bloomberg dividend forecast.