European stocks end their longest losing streak in two years
European stocks yesterday halted their longest losing streak in two years, extending gains as London judges decided the UK has to hold a vote in Parliament before starting the two-year countdown to Brexit.
The Stoxx Europe 600 Index climbed 0.4% at 10.23am in London after falling for eight straight days. It pared an advance of as much as 0.7% as the UK government has already set aside time to appeal the Brexit ruling. The FTSE 100 Index was little changed, erasing earlier gains amid a rise in the pound.
European shares are rebounding from a four-month low, helped by gains of more than 4.5% in Societe Generale SA and ING Groep NV after reporting earnings that beat analyst projections.
Investors remain sceptical on European shares, with the Stoxx 600 almost 60% more volatile than the MSCI All-Country World Index. Mixed earnings reports, uncertainty about the US presidential election and lingering concerns about the strength of Europe’s economy have weighed on the region’s stocks, which are heading for their first year of declines since the height of the sovereign-debt crisis in 2011.
On Thursday, though, European shares saw a respite, rising for the first time in 10 days. Gains at SocGen and ING helped banks rebound after four straight days of losses. That was the longest longest run of drops since August for the gauge tracking the industry, which is back to being the biggest Stoxx 600 decliner of the year.
Asian stocks outside Japan dropped toward a threemonth low amid prospects for higher US borrowing costs next month and mounting concern over the tightening US presidential race. The MSCI Asia Pacific excluding Japan Index fell 0.2% to 437.66 at 4.10 p.m. in Hong Kong, led by technology and utility shares.