European Stocks Edge Higher on Auto Boost to Extend 1-Year High

(Bloomberg) -- European stocks extended their highest level in more than a year, boosted by deal activity and gains in carmakers.

The Stoxx Europe 600 Index added 0.2% as of 8:12 a.m. in London, for a sixth day in the green. Valeo SA led auto shares higher after a report it won orders from four major groups for its Lidar car sensor products. Banks were also among the best performers. Metso Oyj jumped after it said it will merge its mining business with Outotec Oyj and create a separate company, while Osram Licht AG gained after confirming a $3.8 billion buyout offer from Bain Capital and Carlyle Group LP.

Europe’s equity benchmark has rallied more than 6% since the end of May on optimism over easier monetary policy, spurred by dovish central bankers in Europe and the U.S. Those gains pushed the Stoxx 600 into overbought territory on Wednesday, technical indicators show.

To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net

To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Jon Menon

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