Stimulus hope boosts European stocks

<p>Shares have risen on the Stoxx Europe 600 Index following positive comments on stimulus from the president of the European Central Bank.</p>

The Stoxx Europe 600 Index climbed during early trading today (February 28th) on the back of European Central Bank (ECB) president Mario Draghi's indication that monetary stimulus packages are set to continue in the eurozone.

At 08:25 GMT in London, the index was up 0.5 per cent to 288.65 points, with Bayer AG one of the strongest performers in the morning session. Shares in the pharmaceutical firm rose 1.3 per cent after it indicated sales are set to rise by between four and five per cent this year, Bloomberg reports.

However, there was a fall for Deutsche Telekom – parent company of mobile phone network Everything Everywhere – which slipped 0.7 per cent after reporting lower-than-expected fourth quarter earnings.

The Stoxx Europe 600 Index has now risen by 3.2 per cent so far in 2013 and investor confidence has been boosted by Mr Draghi's comments.

Speaking at an event yesterday, he said policymakers have no plans to halt monetary stimulus packages, despite the possibility of the ECB's balance sheet shrinking as confidence is regained on the financial markets.

Find out about the Stoxx Europe 600 Index  and spread betting strategies at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.