MILAN (Reuters) -European utilities stocks extended this month's rally into a 14th day on Wednesday, heading for their longest winning streak since a record 15-day run in March 1998. Investor
European utilities set for longest winning streak since 1998
MILAN (Reuters) -European utilities stocks extended this month's rally into a 14th day on Wednesday, heading for their longest winning streak since a record 15-day run in March 1998.
Investor sentiment around utilities has turned increasingly positive, driven by a surge in electricity demand linked to the rapid expansion of AI datacentres and the electrification of transport and industry. Prospects of stable borrowing costs in the region have also helped the rate-sensitive sector.
By 0906 GMT, the STOXX utilities index was up 0.6%, lifting its year-to-date gains to nearly 24% and making it the second-best performing sector in Europe after banks.
Angelo Meda, head of equities at Banor SIM in Milan, said the rise was due to several factors.
"It's a mix of thematic investing in areas like electrification and datacentres, a shift toward defensive stocks amid economic uncertainty, and the realisation that inflation in Europe seems under control, suggesting rates won't rise further," he said.
Top gainers on Wednesday include Redeia, United Utilities and EDP Renovaveis.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
