European Stocks Advance, Capping Third Straight Quarterly Gain

(Bloomberg) -- European stocks rose, with gains in property companies offsetting a slump in miners, as the benchmark index ended the quarter at the highest level since December 2015.

The Stoxx Europe 600 Index rose 0.2 percent at the close, widening its first-quarter advance to 5.5 percent. The gauge also posted its best March performance since 2010, as easing concern over a win for France's anti-euro candidate in the country's upcoming elections boosted lenders.

“As first quarters go it's been a solid start to the year for 2017,” Michael Hewson, a market analyst at CMC Markets in London, wrote in a client note. “Economic data by and large has been pretty good across the board from the U.S., U.K., Europe and Asia, while rising inflation has prompted some optimism that we could see some trickledown effects into higher wages.”

• The Stoxx 600 rose for a third consecutive quarter, its longest run since a streak of five quarterly gains 2014. A chorus of strategists and investors say the reflation rally in Europe has more to go, boosted by those seeking sanctuary from lofty U.S. stock valuations.
• Investors are also assessing the Federal Reserve's rate trajectory. After the central bank earlier this month raised rates and maintained its forecast for future increases in 2017, some officials this week turned more hawkish.
• Miners on Friday snapped a three-day advance, falling 1.5 percent.
• Also dragging on Europe's benchmark were Old Mutual Plc and Investec Plc, which get a majority of their revenues from South Africa. They tumbled 7.5 percent or more in London, after the firing of Finance Minister Pravin Gordhan raised concerns about the country's fiscal path.

--With assistance from Elena Popina

To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net.

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Todd White, Richard Richtmyer