European shares close week at one-month high
European shares closed at a one-month high, capping their longest streak of weekly gains since July. The Stoxx Europe 600 Index rose 0.2 percent at the close of trading on Friday, taking its advance for the week to 0.9 percent.
The region’s shares have rebounded 4 percent from a low on the 4th November on bets that Donald Trump’s administration will lead to increased infrastructure spending. That spurred a jump in copper, which helped send commodities to their biggest weekly gains in almost five months, pushing European miners to their highest prices since June 2015 on Thursday.
While U.S. equities reached a record high this week, the Stoxx 600 is still down 6.4 percent for the year.
Euro-area economic growth accelerated to its fastest pace this year as growing order books prompted companies to add more workers and raise prices.
A Purchasing Managers’ Index for manufacturing and services rose to 54.1 in November from 53.3 a month earlier, IHS Markit said on Wednesday. That’s the strongest level in 11 months and above the 50 mark that divides expansion from contraction.
The signs that recovery is gathering momentum should give some relief to the European Central Bank as it faces a complex decision on the 8 December whether to extend its 1.7 trillion-euro quantitative-easing program. President Mario Draghi said this week that the recovery remains reliant on continued monetary support.
Asian stocks headed for the first weekly advance this month as a weaker yen spurred gains in Japanese shares and optimism grew that the U.S. economy will be able to cope with higher borrowing costs. Donald Trump’s presidential win has fueled optimism that his pledge to cut taxes and increase fiscal spending will boost profits in the world’s largest economy and lead global growth. Still, Asian stocks are down so far this month as expectations of an imminent U.S. interest rate increase next month prompted investors to abandon emerging-market assets.