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European Stocks Head for Longest Rising Streak This Year

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European stocks headed for their longest rebound of the year, following global equities higher amid growing confidence that central banks are willing to support economic growth.

Rio Tinto Group and BHP Billiton Ltd. pushed a gauge of commodity producers higher, taking its gain from a January low to 22 percent. Seadrill Ltd. and Saipem SpA led an advance in energy stocks, rising more than 7 percent after Saudi Arabia’s oil minister was said to plan a meeting with his Russian counterpart in Doha.

The Stoxx Europe 600 Index rose 0.7 percent to 323.9 at 8:08 a.m. in London, taking its three-day gain since Thursday’s 2013 low to 6.6 percent. The gauge is still 22 percent below its April high and trades at a valuation of about 14.3 times estimated earnings, down from 17.3 in April.

In Asia, investors were encouraged after Chinese data showed a record surge in new credit last month. Adding to the upbeat mood, Premier Li Keqiang said on Monday that China will take decisive actions if needed amid recent global economic headwinds and falling equity markets. European shares rose yesterday amid reassurances from European Central Bank President Mario Draghi that policy makers will act if financial turmoil threatens price stability.

Among stocks moving on corporate news, Anglo American Plc added 2.2 percent after announcing plans to reduce debt and sell as much as $6 billion of assets by the end of the year.

HeidelbergCement AG rose 2 percent after increasing its forecast for costs savings from the purchase of Italcementi SpA. Orange SA climbed 1.2 percent and Michelin & Cie. advanced 2.9 percent, after full-year profit exceeded projections.

Source: Bloomberg