Europe Stocks Rally Along With Global Shares on Powell Comments
(Bloomberg) -- European stocks rose in thin trade as the U.K. market remained closed for a public holiday, tracking gains on Wall Street on Friday where both the S&P 500 and Nasdaq Composite hit all-time highs after Fed Chairman Jerome Powell signaled that the central bank sees little need to tighten policy aggressively.
The Stoxx Europe 600 gained 0.3 percent, crossing back above its 50-day moving average. Europe’s benchmark index is still down 1.2 percent so far in 2018, falling behind a 7.5 percent rally for the S&P 500.
“The European equity market pales in comparison to the U.S. market, where you have better economic growth and better earnings growth, hence the difference in performances and flows” said William De Vijlder, chief economist at BNP Paribas. “On top of that, Europe is more vulnerable to external shocks, we saw it this summer with the Turkish crisis.”
Shares in Metro surged 10 percent after Ceconomy said it’s in talks with EP Investment regarding a potential sale of its stake in Metro.
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