By Sara Sjolin
COPENHAGEN (MarketWatch) -- European stock markets headed for a
fourth-straight day of gains on Monday as investors remained
optimistic about the outlook for the U.S. economy after upbeat
consumer-sentiment data and comments from the International
Monetary Fund.
The Stoxx Europe 600 index rose 0.4% to 322.57, setting it on
track for its highest closing level since early December.
The benchmark still didn't muster a "Santa Rally," but was
poised for a more than 15% yearly advance.
"This has been a good year for equity investors, thanks to
supportive central bank policies, signs of economic recovery and
perhaps a little austerity fatigue," said Oliver Wallin, investment
director at Octopus Investments, in a note.
"So what does 2014 hold? The overwhelming tone at the moment is
one of bullishness, and even the bears seem to be capitulating. We
are positive about equities for the foreseeable future but with
regional allocation playing an important role in the search for
outperformance. The U.S. still looks a little expensive, and better
opportunities can be found in Europe where we retain an overweight
position," he added.
Among notable movers on Monday, shares of ARM Holdings PLC
(ARMHY) put on 3.1% after Apple Inc. (AAPL) confirmed on Sunday
that it has at long last reached a deal with China Mobile to
officially carry the iPhone. Apple uses ARM technology in its
iPhones.
Shares of Serco Group PLC gained 2.5% after the
government-services firm said it secured a six-month extension to
its contract with the Australian Government Department of
Immigration and Border Protection to provide detention services at
centers on mainland Australia and Christmas Island.
Siemens AG (SI) climbed 1% after the industrial conglomerate
said it has signed a contract with the Cape Wind project for the
construction of the first utility-scale offshore wind farm in the
U.S.
Shares of Skanska AB put on 1.6% after the construction firm
said it has been commissioned in a joint venture with Danish MT
Hojgaard AS to build a bridge in Gothenburg, Sweden.
More broadly, investors welcomed news that the International
Monetary Fund has become more optimistic on the U.S. economy.
Managing Director Christine Lagarde said Sunday on NBC's "Meet the
Press" that growth is picking up, and that it is poised to
accelerate as the business climate sees more certainty in 2014.
Adding to that sense of certainty is a budget deal reached by
Congress and clear communication from the Federal Reserve about its
plan to wind down its bond-buying stimulus, Lagarde said.
The Fed was also in the spotlight on Monday, when Jeffrey
Lacker, president of the Federal Reserve Bank of Richmond, said on
CNBC he believes the central bank will begin raising its target
policy rate in early 2015.
U.S. stocks traded higher on Wall Street, buoyed by data showing
consumer sentiment rose to the highest level since July. Data also
showed consumer spending and personal income climbed in
November.
Among country-specific indexes in Europe, Germany's DAX 30 index
climbed 0.7% to 9,462.65, on track for an all-time closing
high.
France's CAC 40 index inched 0.2% higher to 4,202.36 and the
U.K.'s FTSE 100 index put on 0.8% to 6,659.49.
Banks were among major advancers, with shares of Société
Générale SA up 1.4% in Paris, HSBC Holdings PLC (HSBC) rising 1.1%
in London and Commerzbank AG 0.7% higher. Deutsche Bank AG (DB)
climbed 1.1%, even after it agreed to pay 1.4 billion euros ($1.9
billion) late Friday to settle claims that it misled Fannie Mae and
Freddie Mac on the quality of mortgage-backed securities during the
housing crisis.
Outside the major indexes, shares of Premier Foods PLC slid 3.8%
after the U.K. food producer said it is still reviewing its capital
structure and that it includes the possibility of a rights
issue.
Bureau Veritas SA climbed 3.9% after the testing and
certification company agreed to buy Maxxam Analytics International
Corp. for 650 million Canadian dollars ($611 million) from OMERS
Private Equity.
More news from MarketWatch:
Lacker: Fed funds rate could hit 2% by end of 2015
Apple's China Mobile deal spurs tech action
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