European Stocks Advance as Stocks Extend Gains
European stocks advanced for a second day, after the Stoxx Europe 600 climbed the most in three weeks, as investors awaited data on U.S. durable-goods orders. U.S. index futures were little changed, while Asian shares rose.
Airbus Group NV rose 1 percent after Les Echos reported it is extending its partnership with Aviation Industry Corporation of China. Mediaset SpA added 1.6 percent after the broadcaster controlled by former Italian Prime Minister Silvio Berlusconi reported a return to profit for 2013. Lloyds Banking Group Plc slid 4.6 percent as the U.K. government sold a stake in the lender.
The Stoxx 600 added 0.3 percent to 329.66 at 8:23 a.m. in London. The benchmark index for European stocks yesterday gained 1.3 percent, the most since March 4, amid signs that the U.S. economy has rebounded from a harsh winter. Standard & Poor’s 500 Index futures increased 0.1 percent today, while the MSCI Asia Pacific Index gained 1 percent.
A report at 8:30 a.m. New York time will show U.S. durable-goods orders excluding the volatile transportation category rose 0.3 percent in February after gaining 1.1 percent the previous month, according to the average economist estimate in a Bloomberg News survey.
President Mario Draghi yesterday reiterated in a speech in Paris that the European Central Bank will act if necessary to safeguard the region’s economy.
He said the benefits of the central bank’s accommodative monetary policy should become more influential within the euro-area economy as disruptions in the financial system dissipate, while warning that risks remain.
“If any downside risks to this scenario appear, we stand ready to take additional monetary policy measures that ensure our mandate is fulfilled,” Draghi said. “In other words, we will do what is needed to maintain price stability,” he said, adding that “right now, we think that the risks of having deflation are limited.”
(By Jonathan Morgan)
Source: bloomberg
