World Economy

Europe Stocks Boosted by Banking Sector

Europe Stocks Boosted by Banking SectorEurope Stocks Boosted by Banking Sector

European stocks rose for the first time in five sessions as higher German bond yields helped push up lenders including Deutsche Bank AG.

The Stoxx Europe 600 Index rose 0.2% in London. Germany’s largest bank rose after four days of declines, with lenders among the best industry group performers as yields rose across the continent. Personal and household goods shares were also among the best gainers, with Adidas AG rising 8.4% after the sportswear maker raised its sales and earnings forecasts through 2020, while oil shares dropped with the price of crude, Bloomberg reported.

The UK’s FTSE 100 index traded little changed after the UK government unveiled its spring budget in London, with measures on business-tax relief for certain businesses and a reduction to the tax-free dividend allowance. The general benchmark fell 0.3% Tuesday, as drugmakers led losses after US President Donald Trump vowed in a tweet to lower the cost of medicine.

The Stoxx 600 has lost some steam in recent sessions after reaching a 15-month high last week as bets for a Federal Reserve interest-rate increase soared. Futures traders are pricing in a 100% chance of an increase in borrowing costs at next week’s Fed meeting.

The yield on Germany’s 10-year government bonds, Europe’s benchmark debt security, rose as high as 0.377%, surpassing last week’s high of 0.363%.

Investors are focusing on the European Central Bank on Thursday. No major changes to policy are expected, according to a Bloomberg survey of analysts, though respondents predict a change to quantitative easing will be announced in September.

German industrial production rebounded in January, reaffirming the country’s favorable economic outlook after factory orders slumped the most in eight years.


Add new comment

Read our comment policy before posting your viewpoints