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European stocks rise as banks, energy producers lead advances

European stocks

Europe’s equities rebounded from near a three-week low, with banks and energy producers leading the gains.

The Stoxx Europe 600 Index advanced 0.5 per cent at 8:24 a.m. in London, after falling 1.9 per cent in the first three days of the week. Lenders and oil companies rallied more than 1.3 per cent as groups after leading the decline in the first two days of the week.

Investors are also watching for the Bank of England’s rate decision at 12 p.m., with economists projecting the first cut since 2009. Both the benchmark FTSE 100 Index per cent and the FTSE 250 Index of mid-cap companies were little changed.

After rebounding as much as 11 per cent following the post-Brexit vote rout, advances for European equities stalled. Sliding oil prices helped revive concerns over the health of the recovery, while investors remained skeptical about profitability at financial firms, the biggest components of the Stoxx 600, amid record-low interest rates. The gauge remains below its June 23 level, the day the U.K. voted to leave the European Union, while shares in the U.S. and Asia have already recovered.

Paul

The author Paul