(Bloomberg) — European shares reversed course to trade higher, following Wall Street’s yet another positive session, with the region’s luxury stocks getting a fresh boost from yields dipping further.
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The Stoxx Europe 600 Index rose 0.7% as of 2:48 p.m. in London, reversing an earlier drop of as much as 0.4%. Luxury and retail stocks were the biggest drivers of the gains, along with weight-loss drug maker Novo Nordisk. Those growth stocks gained as US and German 10-year bond yields were at September lows.
The gains came after the S&P 500 Index gained for the eighth consecutive session, the longest streak since November 2021. The positive session began as Federal Reserve Chair Jerome Powell did not comment on the outlook for monetary policy or the economy at a conference — a temporary relief ahead of more Fed speakers this week.
A good set of earnings updates from the likes of Marks & Spencer Group Plc, Vestas Wind Systems A/S and Genmab A/S also helped the sentiment. Dutch grocer Royal Ahold Delhaize NV and ABN Amro Bank NV were the only weak spots.
Powell said Wednesday the central bank must be willing to think beyond the complex mathematical simulations it traditionally uses to forecast the economy. He will be speaking again on Thursday at a panel on monetary policy challenges. At the European Central Bank, Governing Council member Martins Kazaks said on Wednesday that the central bank can reduce borrowing costs once it’s sure consumer-price gains are headed back to the 2% target.
European shares have rebounded in November after reaching their lowest level in nearly 10 months as sentiment was hit by concerns over rising bond yields and war in the Middle East. The main regional benchmark is now about 5% higher this year.
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