(Bloomberg) -- The stars are aligning for European equity markets, sending the region's key benchmark to its highest level in more than two years.
Soaring metal prices helped the Stoxx Europe 600 Index push past May peaks on Wednesday, up 0.7 percent, adding to recent bullishness spurred by the European Central Bank and positive earnings. Miners surged to their highest level since February 2013, while gains in carmakers and rising oil prices also fueled the benchmark's fifth day of gains. Germany's DAX Index jumped 1.8 percent, poised for its 24th record of the year.
Stocks in Europe have been on a winning streak since Oct. 26, as the ECB's slow approach to reducing stimulus and waning political risk from Catalonia's independence movement stirred bulls who had spent most of last month on the sidelines. Adding to the optimism, data this week showed the best economic growth for the euro area since 2011.
“We expect the rally to continue into the year-end,” said Peter Garnry, head of equity strategy at Saxo Bank A/S in Copenhagen. “The euro isn't strengthening, the data looks fine, the situation in Spain is under control, and we've got the ECB basically handing the market a put option.”
To contact the reporter on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net.
To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Namitha Jagadeesh, Brian Lysaght
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