European Stocks Advance as ECB Increases Greek Bank Assistance

Stocks in Europe rose for a seventh day as the European Central Bank increased emergency liquidity assistance to Greece and President Mario Draghi said market uncertainty hasn’t derailed the economic recovery.

The Stoxx Europe 600 Index added 1.4 percent to 405.43 at the close of trading, capping its longest winning streak since January. Optimism over a resolution of the Greek crisis has helped the Stoxx 600 rebound 8.8 percent from a July 7 low, after falling almost 10 percent from an April record. Federal Reserve Chair Janet Yellen on Wednesday delivered an upbeat message on the U.S. economy and repeated that the Fed is likely to raise rates this year.

Equity gauges in Italy, Spain and Germany were among the biggest gainers, rising at least 1.5 percent. A measure of automakers posted the largest advance of the 19 industry groups on the Stoxx 600 after data showed European car sales last month rose at the fastest pace since 2009. Daimler AG and BMW AG climbed at least 2.2 percent.

Speaking in Frankfurt after the ECB held interest rates unchanged today, Draghi sought to draw a line under the Greek crisis, confirming the nation’s place in the euro, as the central bank decided to raise funding to its lenders by 900 million euros ($ 980 million). He also said that Europe’s economic pickup is proceeding and increased uncertainty in financial markets isn’t hindering a broadening of that recovery.

Source : Bloomberg