European stocks close at record highs

The european bags closed on Monday in all-time highs, continuing the momentum of October earnings thanks to good results and expectations of increases of interest rates supported the values ​​of banking sector.

The pan-European index STOXX 600 closed up 0.7%, reaching a record high of 478.87 points, driven by a 1.4% rise in bank stocks, while euro zone bond yields advanced on expectations of rate hikes by the European Central Bank (ECB) next year.

The banking sector reached its highest level in more than two years and was the one that performed the best on the day.

The indices of Italy and Spain, with a high banking component, rose 1.2% and 1.4%, respectively, while the German DAX added 0.8 percent.

“There is a lot of optimism about the benefits,” he said. David Madden, market analyst of Equiti Capital. “We spent a lot of time dreading tapering in September and early October. I think now people are going to see tapering as a positive sign, that full circle can be closed.”

The STOXX 600 posted its best month of the past seven in October, rising 4.6%, driven by a series of strong corporate results.

The British FTSE 100 was up 0.6%. But Barclays was down 1.6% after it said its CEO, Jes Staley, will resign following investigations by regulators into his ties to the deceased Jeffrey Epstein.

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