European stocks on Friday came close to a record high as further confirmation of a Jan. 31 Brexit date saw investors buying into markets that have been roiled by uncertainty for more than three years.
British Prime Minister Boris Johnson on Friday won approval for his Brexit deal in parliament, further convincing markets that an overwhelming Conservative majority would likely result in a smooth exit from the EU.
Positive headlines on Brexit, along with a thaw in US-China trade tensions, have primed the STOXX 600 for its best fourth quarter since 2011. Analysts also expect next year to be relatively stronger on the back of recovering economic growth in the bloc.
“The reason for the optimism is that we know through [European Central Bank President] Christine Lagarde that the monetary policy in the EU will continue to do the heavy lifting, although its effects have diminished,” Concord Financial Group managing partner Ephie Coumanakos said.
“Overall, 2020 could be a good year for Europe. Not an accelerating year — growth will still remain fairly subdued — [but] we’re starting to see some improvement. We hope to see a little more inflation. I’m cautiously optimistic,” Coumanakos said.
The pan-European STOXX 600 on Friday rose 3.66 points, 0.9 percent, to 418.40, jumping 1.5 percent from a close of 412.02 on Dec. 13.
Shares listed in Milan, Italy, outperformed regional peers for the day, touching their highest in more than one-and-a-half years on gains in Italy’s biggest utility, Enel SpA.
Its shares rose 1 percent after Moody’s Investors Service improved its outlook on Latin American unit Enel Americas to “positive.”
Payments group Nexi SpA gained 2.4 percent after Intesa SanPaolo SpA on Thursday said that it was selling its retailers’ payment business to Nexi in a 1 billion euro (US$1.1 billion) deal.
France’s CAC 40 on Friday touched its highest level since July 2007, rising 49.26 points, or 0.8 percent, to 6,021.53, surging 1.7 percent from 5,919.02 a week earlier.
Cosmetics maker L’Oreal SA was the best performer on the index.
London’s exporter-heavy FTSE 100 on Friday edged up 8.66 points, or 0.1 percent, to 7,582.48, with domestically focused stocks recovering from losses earlier in the day to secure a massive 3.1 percent increase from 7,353.44 on Dec. 13.
The final reading on Britain’s third-quarter growth showed that the economy grew a little faster than first estimated and that the country’s current account deficit shrank to its smallest since 2012.
Among individual stocks, the London-listed shares of travel firm Carnival Corp were the best performers on the STOXX 600 after its quarterly revenue beat expectations.
NMC Health was the worst performer on the STOXX 600, falling for a fourth straight session after short-seller Muddy Waters Research LLC took aim at the stock earlier in the week.
Additional reporting by staff writer
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