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European stocks rise, heading for highest level since Brexit

London - Equities in Europe rose for a fourth day as Theresa May’s imminent appointment as the UK prime minister reduced political uncertainty and Japanese premier Shinzo Abe promised bolder policy changes to revive the economy.

The Stoxx Europe 600 Index advanced 0.4% to 334.17 at 09:24, taking its four-day gain to 4.5%. All but one of the 19 industry groups on the gauge climbed, led by automakers and commodity companies. Germany’s Daimler and Britain’s Shire contributed the most to the increase in the equities benchmark.

Stocks are rallying on optimism that global policy makers will adopt looser monetary policy in the aftermath of the UK’s vote to leave the European Union. In London, May is set to take charge as early as Wednesday after her rival pulled out of the race for premiership. Investors awaited details of her leadership team to gauge the extent of support the new regime will extend to businesses.

The Stoxx 600 trades at 14.7 times the projected earnings of its members, compared with a five-year average of 13. The measure is still down 8.7% this year on lingering concerns that Brexit will disrupt global trade.

In Tokyo, Abe told former Federal Reserve Chairman Ben S. Bernanke he wants to "accelerate" the nation’s exit from deflation. Abe’s remarks came before an expected announcement of a new fiscal package.

Daimler gained 4.4% after saying second-quarter adjusted earnings grew 5.6% and reiterating its outlook for the full year. Goldman Sachs  said the automaker’s underlying earnings before interest and taxes surpassed estimates.

BMW rose 2.8% and Volkswagen added 2%.

ASOS jumped 5.8% to a two-year high after reporting four-month sales that beat expectations and saying it anticipates full year sales growth at the upper end of the 20% to 25% range.

DNB tumbled 8%, the most since April 2012 on a closing basis, after the Norwegian lender posted second-quarter profit that missed expectations. The bank also said its impairment losses for 2016 will be probably higher than previously stated.

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