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.
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.
The European stock index has rebounded 14 percent since a September low on expectations of further ECB stimulus, coupled with optimism that the global economy is strong enough to withstand higher U.S. interest rates.
Source : Bloomberg