European Stocks Surge on Fed Hike Bets With FTSE 100 at a RecordBy
European stocks jumped the most since the U.S. election, led by banks and miners, as increasing prospects for a Federal Reserve rate increase and robust China factory data boosted optimism about global growth.
The Stoxx Europe 600 Index added 1.4 percent at the close, as all 19 industry groups gained. The benchmark extended gains in afternoon trading as U.S. equities scaled new peaks. The U.K’s FTSE 100 Index and FTSE 250 Index rose to all-time highs, while Germany’s DAX Index rallied 2 percent to close above 12,000 for the first time since April 2015.
- Traders are betting there’s an 82 percent chance of a rate increase at the Fed’s March 15 decision, about double the odds from Friday, after two influential officials from the central bank signaled a greater willingness to tighten monetary policy.
- China’s official factory gauge strengthened in February as producer prices rebounded, spurring gains in metal prices. Stoxx 600 miners rose from their lowest level in three weeks.
- The shares seen as most sensitive to economic growth, which led a rally in the aftermath of the U.S. election, reclaimed top spots on the Stoxx 600 on Wednesday, after losing momentum in February.
- In the U.S., the Dow Jones Industrial Average rose above 21,000 for the first time.