< Back to News

European Stocks Advance After Fed, SNB Restore Optimism

Fed

European shares climbed for a third day on confidence over global growth amid central-bank stimulus.

The Stoxx Europe 600 Index rallied 1.5 percent to 334.19 at 8:09 a.m. in London, extending its rebound into a third day. Switzerland’s Novartis AG and Roche Holding AG contributed the most to the advance today, and the Swiss Market Index climbed 1.4 percent after the nation’s central bank introduced a negative deposit rate. The announcement came after Chair Janet Yellen said the Federal Reserve will probably hold rates near zero at least through the first quarter and that they may not return to more normal levels until 2017.

The Stoxx 600 rose 1.9 percent in the past two days, rebounding after a selloff in energy companies and Greek stocks pushed it for its biggest six-day loss in three years. The gauge is up 0.3 percent for the year.

All 19 industry groups in the Stoxx 600 climbed, with lenders accounting the most for the advance. Raiffeisen Bank International AG jumped 8.2 percent and ING Groep NV rose 2.9 percent. Spain’s Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA added more than 1.5 percent.

Swiss companies rallied. Novartis increased 1.9 percent and Roche gained 1.5 percent. ABB Ltd. added 1.8 percent after saying it will propose former Royal Dutch Shell Plc Chief Executive Officer Peter Voser to become chairman after Hubertus von Gruenberg decided not to stand for re-election.

Greek equities may move after Prime Minister Antonis Samaras failed to gather enough support for his nominee in a parliamentary vote for a new head of state. That means the nation is moving a step closer to early elections, opening the door for the ascent of anti-austerity party. The ASE Index (ASE) slumped the most since 1987 last week on concern a snap parliamentary election will reintroduce the turmoil that threatened the European currency union in 2012.

(Source: Bloomberg)