Eurostoxx 50:2,026.03 (+30.28) Frankfurt DAX:5,196.56 (+32.35) Paris CAC:2,810.11 (+28.43)
EUROPEAN STOCKS rose yesterday, rebounding from a two-year low, as policy makers eased investor concern that the European debt crisis is spreading and the global economy is weakening.
BNP Paribas and Société Général led a rally in banks.
Bayer climbed 7.1 per cent as its Xarelto blood thinner-drug won European backing for use in irregular-heartbeat patients.
The Stoxx Europe 600 Index rose 0.6 per cent in London after earlier falling as much as 2.6 per cent.
The gauge slid to the lowest level since July 2009 yesterday, extending the decline from this year’s high in February to 26 per cent, amid concern the global economic recovery is stalling.
The measure has tumbled 6.1 per cent this week, the most since August 5th.
“Risk assets seem very attractive,” said Dan Morris, a global strategist at JPMorgan Asset Management. “We appreciate there is a risk that it’s not going to work out so we hedge any of our long term positions.”
National benchmark indexes rose in 10 of the 18 western European market yesterday.
G-20 finance chiefs pledged to address rising risks to the global economy and pushed Europe to contain its sovereign debt crisis after concern the world is on the brink of another recession sent stocks tumbling.
Policy makers are “committed to a strong and co-ordinated international response to address the renewed challenges facing the global economy,” G-20 finance ministers and central bank governors said in a statement late yesterday in Washington.
Many urged Europe to implement a July promise to expand the powers of a rescue fund, Japanese finance minister Jun Azumi said.
The European Central Bank may act to address risks to growth as soon as next month should economic data disappoint, governing council member Luc Coene said.
“The ECB has never ruled out things beforehand,” Mr Coene, who heads the Belgian central bank, said in an interview in Washington yesterday. “If the data in early October shows that things are worse than we anticipated we will look at the kind of decisions we have to take for that,” he said. – (Bloomberg)
