Banks Lead Rebound in Europe Stocks; DAX Jumps Most Since August
- All industry groups from the benchmark Stoxx 600 advance
- Index on Thursday reversed gains of 2.5% to close down 1.7%
Market Reaction to the ECB’s ‘Dovish Surprise’
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Europe’s stocks bounced back, recovering from Thursday’s losses, as traders reassessed Mario Draghi’s expanded stimulus package versus his signal that it might be the end of interest-rate cuts.
The Stoxx Europe 600 Index climbed 2.6 percent to a six-week high, boosted by gains in financial firms and automakers. On Thursday, after an initial surge when the ECB announced it lowered its key interest rates and expanded its bond-buying program, the gauge erased all of its increase when Draghi said he didn’t anticipate further rate cuts. Germany’s DAX Index, among the most hurt in this year’s selloff, jumped the most since August on Friday.