European stocks advance for second week on economic recovery
Monday, 28 December 2009
LONDON, Dec 27 (Bloomberg): European stocks rose for a second week, with the benchmark Dow Jones Stoxx 600 Index heading for its largest annual increase in a decade, on mounting evidence that the global economy is recovering.
Royal Dutch Shell Plc and Total SA led gains among oil producers as crude advanced after stockpiles of the commodity fell more than expected. Allied Irish Banks Plc rallied after saying it is looking at ways to raise capital next year. The Stoxx 600 gained 2.3 per cent this past week to 251.9, extending its 27 per cent rally this year. Most equity markets across Europe were closed yesterday and all are closed today for Christmas vacation.
A 59 per cent advance in the regional benchmark gauge from March has been spurred by record-low interest rates in the US and Europe and by governments' commitments worldwide of about $12 trillion to revive credit markets and stimulate economic growth. Sales of existing homes in the US topped forecasts December 22, the latest sign the world's largest economy is emerging from recession.
"Markets still look to be reasonably good value and we expect profits are going to grow pretty quickly next year," said Kevin Gardiner, the London-based head of investment strategy at Barclays Wealth, in a Bloomberg Television interview.
Royal Dutch Shell Plc and Total SA led gains among oil producers as crude advanced after stockpiles of the commodity fell more than expected. Allied Irish Banks Plc rallied after saying it is looking at ways to raise capital next year. The Stoxx 600 gained 2.3 per cent this past week to 251.9, extending its 27 per cent rally this year. Most equity markets across Europe were closed yesterday and all are closed today for Christmas vacation.
A 59 per cent advance in the regional benchmark gauge from March has been spurred by record-low interest rates in the US and Europe and by governments' commitments worldwide of about $12 trillion to revive credit markets and stimulate economic growth. Sales of existing homes in the US topped forecasts December 22, the latest sign the world's largest economy is emerging from recession.
"Markets still look to be reasonably good value and we expect profits are going to grow pretty quickly next year," said Kevin Gardiner, the London-based head of investment strategy at Barclays Wealth, in a Bloomberg Television interview.