European stocks positive
On Monday European stocks rose, paring earlier gains, as investors assessed the implications of U.S. President-elect Donald Trump’s policies, with merger-andacquisition activity providing a fillip.
Commodity producers posted the best performance on the Stoxx Europe 600 Index as metals prices surged, with Glencore Plc and BHP Billiton Ltd. rising at least 1.6 percent. UBS Group AG and HSBC Holdings Plc contributed the most to gains among banks. Siemens AG climbed 0.8 percent after agreeing to buy Mentor Graphics Corp. for $4.5 billion to expand its industrial software capabilities.
The Stoxx 600 advanced 0.4 percent to 338.77 at 11:39 a.m. in London, after earlier rising as much as 1.3 percent. While it closed 0.4 percent lower on Friday, it still posted its best weekly performance since July amid speculation that Trump will pursue businessfriendly policies and ease regulation on industries including banks. A measure of euro-area stock volatility rose 1.7 percent, for a second day of gains. The volume of shares changing hands was 20 percent higher than the 30day average.
The Stoxx 600 rebounded 2.7 percent last week following an 11day streak without notable gains, its longest since 1994. It is still on course for its first annual drop since the height of the sovereigndebt crisis in 2011 amid investor wariness over mixed earnings, the implications of Brexit, as well as the strength of the economic recovery and the willingness of central banks to maintain accommodative monetary policies.
Japanese shares rose, bucking a trend in other Asian markets, after data showed the country’s economy expanded more than forecast and as the yen slid to a five-month low.
Emerging markets extended losses, threatening the best annual rally since 2012, as the dollar’s strength cut demand for riskier assets in the wake of Donald Trump’s election as U.S. president.