News Column

European Stocks Rally On Dovish ECB Remarks

July 3, 2014

BRUSSELS (Alliance News) - European stocks surged higher on Thursdays, after European Central Bank President Mario Draghi said that euro area interest rates will remain low.

"The key ECB interest rates will remain at present levels for an extended period of time in view of the current outlook for inflation," Draghi said in Frankfurt, in the introductory remarks of his customary post-decision press conference.

He also said the ECB will use further stimulus measures unless inflation picks up.

A better-than-expected jobs report from the US also lifted spirits, as the Dow Jones Industrial Average topped 17,000 on Wall Street for the first time ever.

The Euro Stoxx 50 index of eurozone bluechip stocks jumped 1.15%.

The German DAX rose 1.2%, the French CAC 40 picked up 1%, and the FTSE of the UK gained 0.72%.

In Frankfurt, K+S added 3.4%. The potash maker will focus on increasing sales from higher-margin fertilizers which contain magnesium and sulfur, its Chief Executive Officer Norbert Steiner said.

In Paris, Ingenico, a producer of financial transaction systems, jumped 9.8%.

The payment-terminals maker said it entered exclusive negotiations for the acquisition of 100% of the share capital of GlobalCollect from its existing shareholders led by Welsh, Carson, Anderson & Stowe for an enterprise value of 820 million euros.

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Source: Alliance News

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