European Stocks Surge After Leaders Ease Rules
By Tom Stoukas - Jun 29, 2012 6:08 AM ET
European stocks rallied after policy makers eased repayment rules for Spanish banks, relaxed conditions for possible aid to Italy and unveiled a $149 billion growth plan for the region’s economy. U.S. index futures and Asian shares also rose.
Banco Santander SA paced banks higher, jumping 2.9 percent, after euro-area leaders at a summit in Brussels dropped a requirement that their governments get preferred-creditor status on crisis loans to Spain’s lenders. Actelion Ltd. climbed 1.9 percent after getting U.S. approval for its Veletri drug.
The Stoxx Europe 600 Index (SXXP) advanced 1.5 percent to 248.42 at 11:05 a.m. in London, heading for a weekly increase of 0.7 percent. The benchmark gauge has gained 3.6 percent this month as Greece formed a coalition government after its second election in six months, easing concern the nation will leave the euro. Standard & Poor’s 500 Index futures added 1.3 percent, while the MSCI Asia Pacific Index rose 2 percent.
“The European summit has given a very precious chance to Italy and Spain,” said Theodore Krintas, managing director of Attica Wealth Management, which manages 100 million euros ($126 million). “They’re addressing directly the needs of both countries to reduce their funding costs. They will be addressing all other banking unification issues in a very short period of time. By European standards, this is a quick move.”
The Stoxx 600, which climbed 7.7 percent in the first quarter for the best start to a year since 2006, has lost 5 percent in the three months through June as Spanish bond yields surged and political discord persisted in Greece
more:
http://www.bloomberg.com/news/2012-06-29/european-stock-futures-surge-after-eu-leaders-ease-rules.html
| 