* STOXX 600 trounces previous high hit in April 2015
* FTSE 100 marks best day since Dec 2018
* Electrolux slumps on profit warning
* Investors shrug off underwhelming PMI readings (Adds comments, updates price action)
By Sruthi Shankar and Shreyashi Sanyal
Dec 16 (Reuters) - European shares hit record highs on Monday, rising for the fourth successive session as a preliminary U.S.-China trade deal helped extend a rally sparked by the British Conservative Party's election victory.
London's FTSE 100 .FTSE jumped 2.3%, leading gains among regional indexes, as investors took British Prime Minister Boris Johnson's election triumph last week as a signal to buy back into a market that has underperformed on concerns over Brexit. of big dollar earners such as British American Tobacco (JO: SNHJ ) BATS.L , Glencore GLEN.L and BHP BHPB.L rose between 3% and 5%. Banks exposed to Brexit uncertainties, including Royal Bank of Scotland RBS.L and Barclays BARC.L also rose.
Bearish bets unwound even as the pound, whose gains tend to weigh on the exporter-heavy FTSE 100, extended its rise to above 1.33 per dollar. GBP/
"We are witnessing a realignment of British politics and investment," Steven Holden, CEO of Copley Fund Research, wrote in a note to clients. "Down in the dumps and forgotten British brands are suddenly positioned to ride a wave of new-found confidence."
Gains for London, along with general optimism over the U.S.-China trade deal, drove the pan-European STOXX 600 index .STOXX to a record high. The index was up 1.4% at 417.75, logging a new closing high.
"I think we have seen the majority of the good news being priced in today, we would now need new input for further significant gains," said Teeuwe Mevissen, Senior Market Economist at Rabobank in Amsterdam.
Trade-sensitive miners .SXPP rose after Washington said a "phase one" U.S.-China trade deal will nearly double U.S. exports to China over the next two years and is "totally done". DAX .DAXI lagged its European peers, with automaker Volkswagen VOWG_p.DE weaker.
Markit's Purchasing Managers' index, released earlier, showed German private sector activity shrank for the fourth successive month in December as a downturn in manufacturing offset services sector growth. also overlooked lacklustre data from the euro zone and the United Kingdom as the focus remained on trade and Brexit - two factors that have weighed on global markets this year. appliance maker Electrolux AB ELUXb.ST tumbled 10.6% after warning that its North American business would take a bigger-than-expected hit, partly because of costs from its move into a new plant in South Carolina. Oil TLW.L slid 10.2% after S&P Global (NYSE: SPGI ) downgraded its long-term credit rating, days after the company's chief executive officer stepped down and it scrapped its dividend.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.