(Bloomberg) — Europe’s benchmark index rose above its November closing record, tracking a global rally fueled by the Federal Reserve’s interest-rate cut and its upbeat assessment of the US economy.
The Stoxx Europe 600 rose as much as 0.5% to 584.39 points by 8:30 a.m. in London, surpassing its closing peak set on Nov. 12. The blue-chip Euro Stoxx 50 was also set to close at a record for the first time in a month.
UBS Group AG shares rose as much as 5% to the highest level since 2008, after a group of center-right Swiss lawmakers proposed a compromise solution in the debate over the group’s capital levels, which centers on allowing the bank to use more convertible bonds to meet its higher future requirement.
Gilles Guibout, head of European equities at AXA IM, said that with most economists betting on improving European growth, “that should mean double-digit earnings growth in 2026, and no reason to be bearish.”
Travel and leisure as well as financial services stocks outperformed, while personal care led declines.
European mining shares outpaced the broader gauge, as copper climbed to a record following the Fed rate cut and on concerns over tightening global supply. Oil rallied from its lowest close in almost two months, buoyed by bullishness in broader financial markets.
Sportswear stocks were higher after Lululemon Athletica shares jumped in post-market trading in New York as the yoga-wear maker boosted its full-year outlook. Adidas AG rose 2.8%, Puma SE added 4.7%, while retailer JD Sports Fashion Plc gained 1%.
The Stoxx Europe 600 Index is expected to rise about 7% by the end of next year, reaching 620 points, according to the median forecast in a Bloomberg survey of 17 strategists. The last time forecasters were this uniformly bullish was for 2018, when the Stoxx 600 plunged 13%.
“Everyone is convincing themselves that there will be a Christmas rally, so it looks like there will be one,” said Karen Georges, a fund manager at Ecofi Investissements in Paris.
“Investors are keen to buy this year’s laggards, it’s a good time to diversify your portfolio at the moment,” she added.
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–With assistance from Michael Msika and Sagarika Jaisinghani.
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