European Stocks Rally as Economic Recovery Hopes Boost Cyclicals
(Bloomberg) -- European equities started the final month of 2020 on a positive note as Chinese manufacturing data boosted sentiment, with autos, miners and banks leading gains.
The Stoxx Europe 600 Index was up 0.7% at the close, after a record monthly gain in November. Several U.K. companies, including Taylor Wimpey Plc, Lloyds Banking Group Plc and Persimmon Plc, were among the leading climbers on Tuesday as Britain’s FTSE 100 index outperformed amid hopes of a Brexit deal within days.
European stocks advanced as progress on vaccines against the coronavirus boosted economic recovery bets and investments in risk assets. Energy stocks, banks and insurers were the top-performing sectors last month, while more defensive personal and household goods, health stocks and food and beverages lagged.
“There’s still challenges ahead and those challenges need to be worked through: challenges in the vaccine, challenges in the economy, challenges in the balance sheets of the public sector, the corporate sector, the household sector -- you name it.” Arnab Das, global market strategist at Invesco, said by phone. “But to me, it seems the balance of these things is much better than had been expected before November.”
©2020 Bloomberg L.P.