Europe Stocks Jump in a Broad Rally as Miners, Tech Shares SoarBy
European stocks advanced in a broad rally as miners and energy shares gained amid an advance in oil and technology stocks climbed to the highest level this month.
The Stoxx Europe 600 Index rose 0.4 percent at the close of trading. The benchmark gauge slipped less than 0.1 percent on Friday, as oil and gas shares fell to their lowest level since November. European equities rose today following a jump in much of Asia as China’s producer price gains held up.
- China’s producer price gains rose 5.5 percent in June, signaling that demand is maintaining pace for now, even in the face of regulatory curbs. The data comes after a stronger-than-expected U.S. monthly jobs report on Friday.
- The Stoxx Europe 600’s basic resources sector climbed 1.1 percent, the biggest gainer of the 19 industry groups, followed by technology and food-and-beverages firms
- European investors selling their debt holdings are likely to make room for undervalued stocks as bond yields rise, according to NN Investment Partners’ Nicolas Simar. The MSCI Europe Value Index, which tracks some of the region’s cheapest shares, just posted its best week in two months.
- The second-quarter earnings season that’s about to kick off in Europe has a hard act to follow: in the first three months of the year, profits increased by the most in more than six years, JPMorgan Chase & Co. estimates show. With equities now more expensive, investors are stressing the need for another solid quarter for the market to sustain its year-to-date gains.
— With assistance by Sofia Horta e Costa, and Elena Popina