European Stocks Advance as U.S. Peers Halt Three-Day DeclineBy
European stocks closed higher following a rally in U.S. peers as investors speculated that a selloff sparked by Donald Trump policy uncertainty has gone too far and mining shares rose after dropping for six straight days.
The Stoxx Europe 600 Index added 0.6 percent at the close. Crude oil led energy shares higher, while miners led gains in the index, advancing for the first time in seven days. The Stoxx gauge tracking automakers rose 1.6 percent, climbing for three out of the past four days. The Stoxx 600 lost 0.4 percent yesterday, as mining shares plunged 3.3 percent.
- The Stoxx 600 is up about 1.9 percent in March, outpacing the S&P 500 Index, which is down 0.9 percent over same period. Both lost steam late last week after analysts said Trump’s inability to secure support for his health-care bill didn’t bode well for his other proposals.
- Investors would prefer to buy European shares after the French presidential election is over, according to Credit Suisse global strategist Andrew Garthwaite. He sees European growth possibly on par with the U.S. this year.
- Enthusiasm is petering out ahead of the U.K.’s announced triggering of Article 50 tomorrow, but the recovery in risk assets suggests Trump is being offered a second chance to get his pledged policies implemented, according to Mike van Dulken, an analyst at Accendo Markets.
- Portugal’s PSI 20 Index was the best performer among European equity gauges along with stocks in Athens, closing at the highest since June 2016 amid merger and acquisition activity.
- Among shares moving on corporate news, Booker Group Plc fell 0.9 percent after two of Tesco Plc’s largest shareholders urged other investors to join them in opposing Tesco’s 3.7 billion-pound ($4.7 billion) bid for the food wholesaler.
— With assistance by Elena Popina