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Oct. 21, 2014, 11:58 a.m. EDT

European stocks rally on ECB talk, earnings

ASOS surges 16%

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By Sara Sjolin, MarketWatch

LONDON (MarketWatch) — Stock markets climbed across Europe on Tuesday following a report that the European Central Bank is considering buying corporate bonds to further stimulate the eurozone’s ailing economy.

The advances came following a turbulent trading day on Monday, when major benchmarks closed with sharp losses. Last week, many indexes slumped to one-year lows amid concerns the eurozone could slip back into recession after Germany showed renewed signs of economic weakness.

ECB stimulus: Several media reported the ECB may start to buy corporate bonds in the secondary market to beef up its stimulus program. Citing people familiar with the situation, Reuters reported the ECB could decide on the purchases as soon as December , and the first purchases could occur in early 2015.

“If [the] reports are true, then the ECB is moving even closer to outright QE,” said analysts at Brown Brothers Harriman in a note on Tuesday.

The Wall Street Journal, however, said that no specific plans have been discussed and that there is no timetable. A spokesperson from the ECB told MarketWatch that the Governing Council “has taken no such decision” about purchasing corporate bonds.

Tuesday’s market reaction: The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.0371%  dropped on the ECB news, trading at $1.2723, down from $1.2800 late Monday.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -0.86%  gained 2.1% to close at 323.74, bringing it into positive territory for the week.

Germany’s DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX -0.91%  added 1.9% to 8,886.96, while France’s CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 -0.80%  rose 2.3% to 4,081.24. The U.K.’s FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -0.27%  picked up 1.7% to 6,372.33.

Earnings boost: Swiss biotech company Actelion Ltd.  jumped 3% after it said strong sales of a new drug helped lift earnings in the third quarter, prompting an upgrade to its full-year guidance.

Akzo Nobel NV /zigman2/quotes/209835399/delayed NL:AKZA -1.65%   /zigman2/quotes/209835399/delayed NL:AKZA -1.65%  climbed 4.9% after the Dutch painting and chemicals company said profits rose 32% in the third quarter.

ASOS PLC /zigman2/quotes/209092221/delayed UK:ASC -3.01%  surged 16% after the online fashion retailer reported a 27% rise in full-year retail sales.

Swedbank AB /zigman2/quotes/203208387/delayed SE:SWED.A +0.62%  put on 4.7% after the bank reported better-than-expected third-quarter earnings. Read more about the day’s big stock moves here.

/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.0789
+0.0004 +0.0371%
Volume: 0.0000
Feb. 20, 2020 6:13p
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
430.19
-3.71 -0.86%
Volume: 0.00
Feb. 20, 2020 5:50p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,664.00
-125.00 -0.91%
Volume: 86,435
Feb. 20, 2020 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,062.30
-48.94 -0.80%
Volume: 91,055
Feb. 20, 2020 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,436.64
-20.38 -0.27%
Volume: 739,264
Feb. 20, 2020 4:59p
loading...
/zigman2/quotes/209835399/delayed
NL : Netherlands: Euronext Amsterdam
85.50
-1.43 -1.65%
Volume: 842,483
Feb. 20, 2020 5:39p
P/E Ratio
1.61
Dividend Yield
N/A
Market Cap
€16.45 billion
Rev. per Employee
€268,290
loading...
/zigman2/quotes/209835399/delayed
NL : Netherlands: Euronext Amsterdam
85.50
-1.43 -1.65%
Volume: 842,483
Feb. 20, 2020 5:39p
P/E Ratio
1.61
Dividend Yield
N/A
Market Cap
€16.45 billion
Rev. per Employee
€268,290
loading...
/zigman2/quotes/209092221/delayed
UK : U.K.: London
3,254.00 p
-101.00 -3.01%
Volume: 363,996
Feb. 20, 2020 4:35p
P/E Ratio
110.76
Dividend Yield
N/A
Market Cap
£2.81 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203208387/delayed
SE : Sweden: Stockholm
kr 161.90
+1.00 +0.62%
Volume: 4.39M
Feb. 20, 2020 5:29p
P/E Ratio
9.22
Dividend Yield
5.44%
Market Cap
kr179.94 billion
Rev. per Employee
kr3.73M
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Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.

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