European Stocks Climb for a Third Day as Mining Shares AdvanceBy
European stocks rose, extending their longest winning streak in two weeks, as miners and energy producers climbed.
The Stoxx Europe 600 Index added 0.5 percent at the close, taking its March advance to 2.8 percent. Miners closed at the highest level in a week, while energy shares tracked oil prices higher. Investors are assessing the Federal Reserve’s rate-increase trajectory after some policy makers said the central bank may have to hike more times in 2017 than currently forecast.
- For the first month in a year, the Euro Stoxx 50 Index and the region’s currency have gained at least 1 percent, with their 20-day correlation earlier reaching the highest since October. As the two asset classes usually have an inverse relationship, the simultaneous rallies signal improving fundamentals, strategists say.
- Hennes & Mauritz AB tumbled 4 percent after the firm said price cuts to clear inventory over the next three months may exceed last year’s. The comment on a conference call prompted a stock-price reversal after the retailer earlier reported first-quarter earnings that beat estimates.
- Fed Bank of Boston President Eric Rosengren said Wednesday that the central bank should be prepared to raise borrowing costs a total of four times in 2017 to guard against overheating the U.S. economy.
- The U.K.’s FTSE 100 Index will rise another 8.5 percent by mid-2018, with the upside driven by an earnings increase and a narrowing gap between equity and credit yields, Citigroup equity strategists led by Jonathan Stubbs wrote in a note.
— With assistance by Justina Lee, and Elena Popina