TODAY U.S. MARKET’S ARE CLOSED. – PRESIDENT DAY
The Stoxx Europe Index climbed 2.9 percent at 10:05 a.m. in London, taking its two-day gain to 5.9 percent, the most since 2011. Italian and Greek lenders led a bank rally, while the region’s automakers advanced, helped by a weakening euro.The optimism that swept through European equities entered a second day as lenders and car-makers further rebounded, while investors bet on additional central-bank stimulus.Further boosting sentiment were bets for increased central-bank stimulus after data showed a slide in Chinese exports in January was eclipsed by an even bigger tumble in imports, leading to a record trade surplus. Those helped the Shanghai Composite Index fall just 0.6 percent after reopening following a week-long holiday, while the yuan jumped as People’s Bank of China support for the currency and set its fixing at a one-month high.
European equities rallied the most in three weeks on Friday, after hitting their lowest prices since 2013, as banks, miners and energy producers surged at least 5.5 percent. Lenders have been particularly hit in the rout that took $8.4 trillion from global equities this year and the Stoxx 600 down as much as 17 percent. The index reached a valuation of 13.9 times estimated earnings on Friday, down from 17.4 in April, after a gauge tracking volatility expectations climbed to the highest level since August. Benchmark stock indexes of Italy, Spain, Greece and Germany rallied more than 2.5 percent on Monday. Those all lost more than 16 percent this year through Friday, becoming some of the world’s worst performers among 93 equity indexes tracked by Bloomberg. Societe Generale SA didn’t lower its Stoxx target at all this year, making the bank the biggest bull with a projection for a 36 percent surge from the last close. Its forecast would take the European benchmark comfortably above an all-time high reached in April.