Europe Stocks Rise to Highest Since 2015 on Economic OptimismAleksandra Gjorgievska and Elena Popina
European stocks advanced to their highest level since December 2015 in a broad rally underpinned by higher raw-materials prices and forecasts of stronger inflation.
The Stoxx Europe 600 Index closed 0.8 percent higher, with the mining sector hitting its highest level since 2014 as metals prices climbed for a second day. The European equity gauge rose for a fifth day, in its longest climbing streak since December, as markets in both Asia and the U.S. rose.
- Inflation data from China, the U.K., Germany and the U.S. will be in focus this week, as all are expected to come in stronger than last month due to the rise in energy prices, according to Michael Hewson, an analyst at CMC Markets in London.
- “There is a sentiment of optimism around Trump’s policies and last comments regarding fiscal promises,” Andrea Tueni, a trader at Saxo Bank, said by email. “We are still following last week’s good trend, waiting for more catalysts from tomorrow with Yellen testimony and macro statistics,” he said, referring to Federal Reserve Chair Janet Yellen’s scheduled testimony Tuesday in Washington.
- Eighteen of 19 sectors advanced in the Stoxx Europe 600 index, led by a 2.4 percent jump in the basic-resources sector.
- Stada Arzneimittel AG jumped 13 percent after the German drugmaker said it received two takeover offers. Royal Bank of Scotland Group Plc rose 2.5 percent after the U.K. lender was said to plan more than $1 billion of cost cuts.
- “We saw investor concern about the elections in France, but that’s still weeks off, and in the absence of bad news the market is advancing amid a solid earnings season, decent macro backdrop and good economic data,” Daniel Murray, head of research at EFG Asset Management in London, said by phone.