News Column

European Stocks Remain In Rally Mode Thanks To Draghi Remarks

August 25, 2014

WASHINGTON (Alliance News) - European stocks surged higher on Monday as markets cheered uncharacteristically dovish remarks from European Central Bank President Mario Draghi.

In a speech at Jackon Hole Friday, Draghi said the ECB would carry out quantitative easing unless inflation picks up.

The Euro Stoxx 50 index of eurozone bluechip stocks jumped 2.07%, and has rallied into positive territory for the year.

The German DAX gained 1.8% and the French CAC 40 added 2.1%, led by big banks. Switzerland's SMI advanced 0.67%. Markets in the UK were closed.

Roche was moderately higher in Zurich. The Swiss pharmaceutical giant has agreed to buy US biotech company InterMune Inc. (ITMN) for USD8.3 billion in cash, thus expanding Roche's respiratory product portfolio.

Umicore SA lost 1.1%. The precious-metals recycler was cut to sell from hold at Deutsche Bank.

BMW, Daimler and Volkswagen were all higher.

Meanwhile, Lufthansa gained 0.3%. The airline's management has called a decision by its labor union threatening a new round of strikes in a dispute over wages and early retirement benefits as "incomprehensible."

In the U.S, the S&P 500 rose above 2,000 on Monday for the first time, powered by merger news and hopes that ultra-accomodative monetary policy will continue for some time.

Burger King (BKW) is in talks to buy Tim Hortons (THI) and form a new publicly listed company that would be based in Canada. The deal would make it the world's third-largest fast-food restaurant company.

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Source: Alliance News

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