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London - European stocks rose, heading for their longest winning streak in 18 months, as they joined a global equity rally fueled by Federal Reserve chair Janet Yellen’s stance that more interest-rate increases would be appropriate if the world’s largest economy stays on course.
The Stoxx Europe 600 Index advanced 0.4% at 10:37. Lenders led gains, and Credit Agricole rose the most among European banks after saying its LCL division posted net income up 15% from a year earlier.
Yellen’s comment that waiting too long to raise rates “would be unwise” and risk disrupting financial markets has buoyed the sector, which benefits from higher borrowing costs.
The Stoxx 600 Banks index rose 1.4%, heading for its best weekly gain since early January. Spanish lender Banco Bilbao Vizcaya Argentaria climbed 2.8% after it was raised to overweight at JPMorgan. ABN Amro rose 2.3% after the Dutch lender reported a 23% increase in fourth-quarter profit.
Traders are pricing in a 53% chance the Fed raises rates by May and 74% by June, according to futures prices. Heineken NV rose the most since April after the firm forecast growth in sales and earnings this year.
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