European stocks rebounded from the year’s biggest weekly decline, with commodity shares leading gains after China’s central bank boosted stimulus measures.
The Stoxx Europe 600 Index added 0.8 percent to 406.87 at the close of trading. A gauge of miners rose 1.7 percent after China cut the amount of reserves lenders need to hold by the most since the global financial crisis. The move by the world’s biggest commodity consumer follows stimulus measures by the European Central Bank and the Bank of Japan.
“It’s still a very bullish environment for the market,” Michael Kapler, who manages equities at Mittelbrandenburgische Sparkasse, said by phone from Potsdam, Germany. “Central banks are extremely supportive around the world, and that will definitely stay that way for some time. We have accommodative policies in Europe, Japan, China. European stocks have had such a big rally this year, last week’s breather was more than welcome. We’re likely to see more gains this year.”
The Stoxx 600 fell 1.8 percent on Friday, the most since January, as concern grew over Greek debt and China increased the supply of shares available for short selling. The benchmark measure is still up 19 percent this year, having last reached a record on Wednesday.
BHP Billiton Ltd. and Rio Tinto Group rose at least 2.5 percent each today, helping miners post the biggest gains among 19 Stoxx 600 groups, as industrial metals rallied.
Germany’s DAX Index jumped 1.7 percent, rebounding from its worst week since 2011 and posting the best performance among western-European markets today. Fresenius Medical Care AG advanced 2.3 percent after a report said it’s discussing a purchase of Israel’s Nephromor Ltd. Fresenius SE, which controls the German dialysis provider, added 2.4 percent.
Among stocks moving on corporate news, Telenet Group Holding NV rallied 5.7 percent after agreeing to buy Royal KPN NV’s Belgian mobile-phone business Base for 1.33 billion euros ($1.43 billion). KPN advanced 3.1 percent.
HSBC Holdings Plc gained 2.2 percent after Goldman Sachs Group Inc. added the shares to its conviction buy list, saying it has the greatest potential for restructuring among large European banks. Petrofac Ltd. slid 10 percent after saying it expects a pretax loss this year, citing a project delay and increased costs.
Investors are also watching developments in Greece, before a meeting of euro-area finance ministers on April 24. With negotiations over aid at a deadlock, Prime Minister Alexis Tsipras ordered local governments to move their funds to the Greek central bank. The Greek ASE Index erased intraday gains of as much as 1.9 percent to close 0.1 percent down. The gauge tumbled 6 percent last week.