European shares close to 3-week high
On Monday European shares headed for a three-week high as banks surged and Royal Philips NV reported higher earnings.
Spanish and Italian equities led a gauge of lenders to the best performance of the 19 industry groups on the Stoxx 600. Commodity producers posted the second-biggest increase as metals prices gained. Philips climbed 4.6 percent after reporting a 14 percent increase in third-quarter profit on improved performances from its health-care businesses.
The Stoxx 600 rose 0.5 percent to 345.98 at 11:05 a.m. in London, helped also by services and manufacturing data showing euro-area economic momentum accelerated to the fastest pace this year in October. The Euro Stoxx 50 Index, which tracks the region’s bluechip companies, jumped 0.9 percent to its highest level since April.
The earnings season is gathering steam, with more than 100 Stoxx 600 companies scheduled to report this week. Among those are lenders Deutsche Bank AG and Barclays Plc, drugmaker Novartis AG and carmaker Volkswagen AG. Analysts forecast a drop of 4.3 percent for 2016, followed by double-digit earnings growth in each of the next two years.
Spain’s benchmark IBEX 35 Index rose 1.5 percent, the most among western-European markets today, after the Socialist Party leadership opted to stand aside and let acting Prime Minister Mariano Rajoy take office for a second term, signaling the end of the nation’s 10-month political impasse.
The MSCI Asia Pacific Index rose 0.4 percent, reversing an earlier loss. The Shanghai Composite Index jumped 1.2 percent on optimism Chinese authorities will boost spending and hasten reform of state-owned companies. Communist Party leaders are gathering in Beijing this week for a full meeting of the party’s Central Committee, or plenum, a key forum for securing broader support for policy moves.
Oil traded near $50 as betterthan-expected economic data in Europe countered Iraq’s demand that OPEC should exempt it from planned output cuts.