A rally in carmakers pushed European stocks to their best performance of the year as investors assessed valuations following a four-day losing streak.
Auto-related companies rose the most on the Stoxx Europe 600 Index after an industry association forecast an acceleration in Chinese sales in 2016. Energy stocks reversed gains, falling after oil retreated toward a 12-year low. Declines of more than 2.6 percent each in Rio Tinto Group and BHP Billiton dragged a gauge of miners to its lowest level since July 2003 as commodity prices slipped.
The Stoxx 600 rose 0.9 percent to 343.22 at the close of trading, paring an earlier advance of as much as 1.9 percent. After a 7 percent slide this year through yesterday, shares are trading at 14.4 times projected earnings, the lowest in about a year. Germany’s DAX Index, which relies heavily on exporters including carmakers, was among the best performing western-European markets today, adding 1.6 percent and paring its loss this year to 7.1 percent.
European stocks rose as automakers gained and investors assessed valuations after the region’s equity benchmark posted a four-day losing streak.
Auto-related companies recorded the best performance of the 19 industry groups on the Stoxx Europe 600 Index. Rio Tinto Group and BHP Billiton Ltd. dragged a gauge of miners to its lowest level since October 2003 as commodity prices slipped. A measure of energy stocks slid as oil extended declines from the lowest close in more than 12 years.
The Stoxx 600 rose 0.4 percent to 341.48 at 8:23 a.m. in London. The European equity benchmark ended a volatile session yesterday at its lowest level since September. Germany’s DAX Index, which relies heavily on exporters including carmakers, recovered 0.6 percent today, paring its loss this year to 8 percent.
Â Among stocks moving on corporate news, Debenhams Plc jumped 16 percent after the British retailer reported 19-week holiday sales that exceeded analysts’ projections. Wm Morrison Supermarkets Plc rose 12 percent as the supermarket chain unexpectedly snapped a four-year record of of declining sales.