Euro­pean stocks pos­i­tive

Malta Independent - - FINANCIAL -

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.

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