Broad Rally in European Stocks as French Equities Jump on MacronBy
European equities rallied the most since April, rebounding from a two-week decline as France’s benchmark gauge advanced after President Emmanuel Macron’s parliamentary victory over the weekend cemented his electoral triumph and German stocks jumped to a record high.
The Stoxx Europe 600 Index advanced 0.9 percent at the close. French stocks jumped the most since May after Macron’s government claimed a historic majority in the country’s legislature. The Stoxx 600 is up 8.4 percent this year after being up as much as 9.7 percent in May.
- The CAC 40 climbed 0.9 percent after Macron’s party and its allies won the biggest majority in 15 years. The French benchmark is up 9.2 percent this year, outperforming the broader European gauge.
- “After a central-bank bonanza last week, this week has an altogether quieter feel to it, though politics could well continue to play a part, in the absence of any meaningful economic data,” Michael Hewson, an analyst at CMC Markets in London, wrote in a note.
- Investors will pay attention to Brexit talks starting today. The U.K. government is on the backfoot as it begins negotiations with the European Union, after Prime Minister Theresa May’s attempt to strengthen her hand by calling an election backfired.
- European banks rose 1.1 percent as bond yields climbed, while miners rose 1.8 percent to lead a broader gauge of stocks higher.
— With assistance by Elena Popina