Euro shares surge on Chinese reserve cut, Greek talks; DAX up 1.46%
Published Feb 20, 2012 12:41PM ET
After the close of European trade, the EURO STOXX 50 gained 1.19%, France's CAC 40 added 0.96%, while Germany's DAX surged 1.46%. Meanwhile, in the U.K. the FTSE 100 advanced 0.68%.
European shares gained for the fourth straight day, adding to six month highs after China slashed the amount of cash that its banks must hold in reserves for the second time in three months.
This action is designed to spur lending and increase growth in the world’s second largest economy.
Chinese bank reserve requirements will fall 50 basis points on February 24.
Meanwhile in Greek news, euro zone finance ministers are meeting in Brussels today to hash out the terms of the Greek bailout package and potential contributions from central banks.
The leaders also plan on launching a bond exchange with private investors to help avoid a Greek sovereign default.
German Finance Minister, Wolfgang Schaeuble stated, “We still have a bit of work to do. We’ve set out to wrap up the decision on a new aid program for Greece. I’m confident.”
TNT Express, Europes second largest package delivery company, soared 60% after rejecting a USD6.43 billion takeover offer from UPS.
Oil companies gained after Iran halted crude exports. BP gained 2.1% on the news.
Petroleum Geo-Services advanced 9.2% after beating fourth quarter earning estimates.
Bayer AG gained 2% on progress in the testing of its macular edema treatment.
In bearish news, Veolia Environnenment gave back 3.1% on news that the company is seeking to replace its CEO.
The stock market is closed today in the U.S. due to the President Day holiday.
Investors are awaiting the minutes from Australia’s policy setting meeting, a speech by RBA Chairman Glenn Stevens, Switzerland’s trade balance numbers, and Canadian retail sales on Tuesday.
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