European Stocks Climb, Extending Biggest Monthly Gain on Record
(Bloomberg) -- European equities rose, extending a rally that has added about $1.7 trillion to the market value of the Stoxx Europe 600 benchmark.
The index was up 0.4% at the close, with real estate and insurance stocks lagging while technology and energy outperformed. The benchmark is up about 15% in November, on track for the biggest monthly gain in its history.
“The prospect of a sound economic recovery later in first half of 2021 should fuel risk asset performance for the remainder of 2020 and into 2021, with rising yields, higher equities, and tighter spreads,” Commerzbank AG cross-asset strategists led by Alexander Kraemer wrote in a note.
Britain’s FTSE 100 Index underperformed as investors prepared for index adjustments. “The increase in the weight of Unilever Plc in the FTSE U.K. Index Series is effective at tonight’s close which means tracking funds have to raise the cash for that weight increase by selling the appropriate weights in all the other names,” said Peter Angeli, head of tracker quants at Cantor Fitzgerald LP.
Elsewhere, Banco de Sabadell SA was the worst performer, falling 14% after the Spanish lender’s takeover talks with Banco Bilbao Vizcaya Argentaria SA ended. Electricite de France SA rose the most in the index following reports that France and the European Union are close to reaching a deal on nuclear regulation.
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