ROME: European stocks pulled off a second monthly advance on bets the region’s central bank will increase stimulus at this week’s meeting.
The Stoxx Europe 600 Index rallied to a three-month high, taking its November gain to 2.7 percent. Auto-related shares rose the most on Monday as the weakening euro is seen helping exporters. Economists surveyed by Bloomberg unanimously predict the European Central Bank will expand stimulus on Thursday.
“It’s all about assessing your positions ahead of the ECB this week,” said Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen. “That will give investors some direction going into the new year. While I think Draghi will deliver, the market has already been priced quite aggressively for a deposit-rate cut. We might get a case of people buying the rumor and selling the fact.”
The Stoxx 600 increased 0.5 percent to 385.43 at the close of trading in London, reversing an earlier drop of as much as 0.5 percent. While commodity producers also ended up rallying on Monday, BHP Billiton Ltd. bucked the trend. It extended a seven-year low, after Brazil’s Attorney General said the country will seek as much as 20 billion reais ($5.2 billion) compensation for a dam collapse at an iron-ore venture owned by the company and Vale SA.
