EUROPE MARKETS: European Stocks Rally After Dutch Election, Surge For Miners
16 März 2017 - 2:37PM
Dow Jones News
By Carla Mozee, MarketWatch
Stoxx 600 at around its highest since December 2015
European stocks leapt to their strongest levels in more than a
year Thursday, carried higher by a rally in mining shares, and
after Dutch voters rebuffed Geert Wilders's far-right party in a
general election.
The Stoxx Europe 600 index climbed 0.6% to 377.49, on track to
mark the highest close since December 2015, FactSet data showed.
All sectors advanced, led by a surge in the basic resources group .
The pan-European index on Wednesday closed up by 0.4%
(http://www.marketwatch.com/story/european-stocks-advance-ahead-of-dutch-election-fed-meeting-results-2017-03-15).
In Amsterdam, the AEX climbed 0.6% to 514.80, on course for its
best close since January 2008. The move came after the far-right
Party for Freedom, led by Geert Wilders, fell short in the
Netherlands general election
(http://www.marketwatch.com/story/anti-immigrant-populists-appear-to-fall-short-in-dutch-election-2017-03-15).
Preliminary results released late Wednesday showed the Dutch
political establishment was set to hold onto power.
The election was seen as a litmus test of backing for populist
movements in Europe. The Party for Freedom wanted to leave the
European Union and halt Muslim immigration.
The "Dutch election results revived hope that the populist
movement may have not spilled over the core European Union members.
It especially revived faith that Marine Le Pen's Front National
could experience a similar rattle on the upcoming French
elections," said Ipek Ozkardeskaya, senior market analyst at London
Capital Group, in a note.
"The euro/dollar rallied on the sweet combination of Dutch
election results and the Fed announcement," she said. "We remind
that the downside euro risks prevail on the run up to the first
round of the French election due on April 23rd."
The euro surged to one-month highs late Wednesday after the
preliminary results were released. The shared currency slightly
pared those gains on Thursday, buying $1.0728, compared with
$1.0735 late Wednesday in New York.
The Federal Reserve late Wednesday raised interest rates, as
expected, and Fed Chairwoman Janet Yellen signaled the central bank
will hold to a gradual pace of raising interest rates
(http://www.marketwatch.com/story/fed-raises-interest-rates-by-a-quarter-point-sees-two-move-moves-this-year-2017-03-15).
Miners: Anglo American PLC (AAL.LN) led a rally among miners.
Its shares climbed 8.7% after billionaire Anil Agarwal's family
trust, Volcan Investments Ltd., bought a 12% stake
(http://www.marketwatch.com/story/indias-agarwal-takes-12-stake-in-anglo-american-2017-03-16)
in the producer of iron ore, copper and other metals.
The mining sector was also aided by a pullback in the dollar in
the wake of the Fed decision, with dollar-denominated metals prices
rising.
Read:Why the Fed interest-rate hike fueled a rally in gold
(http://www.marketwatch.com/story/why-the-fed-interest-rate-hike-fueled-a-rally-in-gold-2017-03-15)
Indexes: Germany's DAX 30 index rose 0.7% to 12,090, and
France's CAC 40 added 0.6% at 5,013, looking at its strongest close
in 2017.
The FTSE 100 rose 0.6% to 7,412, on track for a record closing
high. The pound jumped above $1.23 after the Bank of England voted
8-1 to hold the key rate at 0.25%, with the hawkish dissent driving
sterling higher
(http://www.marketwatch.com/story/ftse-100-hits-record-high-as-anglo-american-leads-rally-in-miners-2017-03-16).
Other developments: A letter sent to the International Monetary
Fund in Paris exploded, injuring a staff member
(http://www.marketwatch.com/story/letter-bomb-sent-to-imf-office-explodes-reports-2017-03-16).
The IMF is working with French authorities who are investigating
the incident.
(END) Dow Jones Newswires
March 16, 2017 09:22 ET (13:22 GMT)
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