Stocks: Monday review
European stocks rose for a second day as foreign governments and central banks urged policy makers in Europe to intensify efforts to contain the region’s debt crisis following meetings with the International Monetary Fund.
National benchmark indexes rallied in all 18 western European markets today, except Greece and Norway.
German Chancellor Angela Merkel said euro-region leaders must erect a firewall around Greece to avert a cascade of market attacks on other European states and said expanding the powers of the region’s rescue fund, the European Financial Stability Facility, was necessary to avert contagion.
Allianz SE (ALV) and Axa SA (CS), Europe’s biggest insurers, jumped the most in more than a year.
Deutsche Bank AG led lenders higher amid speculation the European Central Bank may cut interest rates and as executives called for a U.S.-style Troubled Asset Relief Program in Europe.
Fresnillo Plc (FRES) tumbled 6.9 percent as silver had the biggest three-day drop since 1980.
Deutsche Bank rose 8.7 percent to 25.12 euros. NP Paribas (BNP) SA, France’s biggest bank, rallied 4 percent to 26.33 euros.
U.S. stocks advanced, giving the Dow Jones Industrial Average its biggest increase in a month, amid speculation that European policy makers will act to prevent the region’s debt crisis from getting worse.
ECB policy makers are likely to debate next week restarting their covered-bond purchases along with further measures to ease monetary conditions, a euro-region central bank official said.
Equities rebounded after ECB Governing Council member Ewald Nowotny said there may be “good reason” to reintroduce loans with a maturity of more than six months.
Bank of America Corp. and JPMorgan Chase & Co. (JPM) rose more than 4.5 percent as the European Central Bank was said to consider restarting covered-bond purchases along with further measures to ease monetary conditions.
Berkshire Hathaway Inc. (BRK/A) Class B shares added 8.6 percent as the company plans a stock buyback.
Boeing Co. (BA) rallied 4.2 percent as the delivery of the 787 Dreamliner ended more than three years of delays.