Sun, Sep 16, 2012 - Page 15 News List

European stocks rally on stimulus, German ruling

Bloomberg

European stocks posted a second week of gains as the US Federal Reserve announced a third round of quantitative easing and Germany’s highest constitutional court cleared the way for the euro-area’s permanent bailout fund.

Carmakers and mining companies led the rally as US officials also raised their outlook for the world’s largest economy. Peugeot SA advanced 9.5 percent, while Kazakhmys PLC jumped 18 percent. Commerzbank AG and Royal Bank of Scotland PLC climbed more than 14 percent. European Aeronautic, Defence & Space Co slid 15 percent after announcing talks for a potential merger with BAE Systems PLC.

The benchmark STOXX Europe 600 Index gained 1.3 percent to 275.95 this week, reaching the highest daily close since June 1 last year. The gauge has surged 18 percent from this year’s low on June 4 amid speculation central banks around the world would take further measures to support an economic recovery.

National benchmark indices this week increased in all of the 18 western European markets except Denmark. The UK’s FTSE 100 rose 2.1 percent, France’s CAC 40 added 1.8 percent and Germany’s DAX Index climbed 2.7 percent. Italy’s FTSE MIB rallied 3.2 percent, while Spain’s IBEX 35 jumped 3.5 percent.

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