Stocks on continent recover as investors bank on easing

Julian Harris
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SHARES across Europe made significant gains yesterday, as investors were cheered by hints of more monetary and fiscal stimulus from authorities.

The Euro Stoxx 50 index closed up 1.46 per cent, as stocks rose on Germany’s Dax (by 1.16 per cent), France’s Cac (by 1.39 per cent), Spain’s Ibex (by 1.77 per cent).

Despite ongoing worries about the health of the Eurozone, leading the way was Italy’s FTSE MIB index, up 2.1 per cent.

“Poor consumer confidence data from France and a sharp slide in German import prices has fuelled expectations of further easing from the ECB at next week’s rate meeting,” commented Michael Hewson of CMC Markets.

There is also more promise of monetary support emanating from Japan, while Eurozone governments’ pledge to tackle youth unemployment was taken by some analysts as a sign of a possible easing of austerity.