European shares rose for a sixth straight day, the longest streak since January, as miners rallied on China stimulus and investors weighed upbeat corporate earnings.
The Stoxx 600 Index closed 0.5% higher, with miners jumping the most since November as China’s top decision-making body signaled more help for commodities. Personal care stocks also outperformed, boosted by a jump in Unilever Plc after the consumer products company’s sales beat estimates. Adidas AG advanced as the German sportswear maker improved its guidance for the year.
Chinese stocks had rallied earlier on bets Beijing is finally adopting a more aggressive growth policy, following the Communist Party’s Politburo meeting on Monday. Meanwhile, Germany’s business outlook worsened a little last month, data showed Tuesday.
This is a busy week for investors, with companies with a combined $27 trillion market value reporting earnings, while the Federal Reserve, the European Central Bank and Bank of Japan will deliver their latest monetary policies decisions. The focus will be on the path they lay out for interest rates hikes as worries about longer hawkish central banks have recently dented a equity rally in Europe.
“It’s the week of central banks and earnings. After the latest inflation data in the US, which was positive, the key will be the tone of central banks and the message for what’s next,” said Francisco Simón, European head of strategy at Santander AM. “We see the Fed holding rates after July’s hike and the ECB going for another one in September.”
The Spanish asset manager remains neutral on equities.
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--With assistance from Michael Msika and Sagarika Jaisinghani.
Author: Macarena Muñoz