On Tuesday European stocks rose for a fourth day,
extending their highest levelsince 2008, amid speculation
that the European Central Bank will announce a plan for
quantitative easing this week.
ECB President Mario Draghi will make his biggest push yet to steer the euro area away from deflation by introducing quantitative easing at the Jan. 22 meeting, according to 93 percent of respondents in a Bloomberg News survey. The ECB president will probably announce a 550 billion-euro ($639 billion) bond purchase program, economists say.
The Stoxx Europe 600 Index jumped 1.1 percent to 357.12 at
1:01 p.m. in London, with banks and miners leading gains among
19 industry groups. The equity benchmark gauge has surged 5.1
percent in the four days since the Swiss central bank
unexpectedly abandoned its currency peg against the euro, a move
that increased speculation of a government-bond buying program
from the ECB.
A gauge of Stoxx 600 commodity companies advanced 2.2
percent as data showed Chinese gross domestic product expanded
in the three months through December more than forecast.
Industrial output and retail sales for the world’s biggest
copper consumer also beat estimates.
Glencore Plc gained 3.8 percent, Antofagasta Plc gained 2.1 percent, and Anglo American Plc climbed 3.8 percent.
Germany’s DAX Index traded at a record as a report from the ZEW Center for European Economic Research showed investor confidence jumped to the highest level in 11 months in January, beating forecasts.
National benchmark indexes in Spain and Italy rose more than 1 percent. Portugal’s PSI 20 Index rose 0.4 percent for a seventh day of gains, its longest streak in a year.
Royal Philips NV rose 3.7 percent as Financieele Dagblad reported that private equity firms KKR & Co. and CVC Capital Partners Ltd. may make a joint bid for the Dutch company’s lighting unit.
Novozymes A/S climbed 6.9 percent to its highest price since at least 2000 after fourth-quarter profit exceeded estimates. Deutsche Lufthansa AG gained 5.1 percent as Barclays Plc recommended buying the shares.
SAP SE lost 4.6 percent after the largest maker of business-management software cut its 2017 profit target.
Unilever slid 0.2 percent, paring losses of as much as 2.6 percent. The firm, whose detergents and deodorants are used by 2 billion consumers daily, said its financial performance in 2015 will be similar to last year amid weaker demand in emerging markets such as China. Sales rose 2.9 percent in 2014, the worst performance in more than a decade.
