Exporters and financial companies led a rally in European stocks after the Federal Reserve fulfilled investor expectations by raising rates for the first time in almost a decade.
Investec Plc and Man Group Plc rose at least 3.6 percent, while carmakers Volkswagen AG and Daimler AG advanced 3.3 percent or more. Germany’s DAX Index was among the best performers in western Europe, up 2.6 percent.
The Stoxx Europe 600 Index climbed 1.2 percent to 364.9 at the close of trading, paring earlier gains of as much as 2.3 percent. It rose for a third day, after Fed Chair Janet Yellen signaled the U.S. economy is performing well and any further tightening will be slow. Yesterday’s quarter-point rate increase marked the culmination of the Fed’s yearlong effort to prepare investors for the end of an unprecedented era of stimulus.
Among other stocks active, Standard Chartered Plc, which gets most of its revenue from Asia, climbed 7.3 percent after Hong Kong raised its base rate for the first time in nine years. Hellenic Exchanges SA gained 7.3 percent after a filing showed Goldman Sachs Group Inc. raised its stake in the bourse operator in December.
Casino Guichard-Perrachon SA tumbled 12 percent for the biggest decline on the Stoxx 600 after short seller Carson Block said he’s betting against the French supermarket operator. Rallye SA, its biggest shareholder, plunged 19 percent after Block said the stock is worth close to zero.
Elementis Plc declined 6.6 percent after the specialty-chemicals maker forecast full-year earnings at the lower end of analysts’ estimates, citing challenging markets.