European Shares Rally On Policy Support Hopes
European stocks posted strong gains on Tuesday after the European Central Bank joined its U.S. and Japanese peers in indicating that it stands ready to take “appropriate and targeted measures” to fight the economic impact of coronavirus.
Earlier today, the Reserve Bank of Australia has cut official interest rates to a new record low of 0.5 percent to support the economy amid the global coronavirus outbreak.
G7 finance ministers are due to take part in a conference call on the economic impact of the coronavirus later today.
The pan European Stoxx 600 was up as much as 2.7 percent at 386.10 after edging up 0.1 percent in the previous session.
The German DAX climbed 2.6 percent, France’s CAC 40 index rallied 2.2 percent and the U.K.’s FTSE 100 added 2.5 percent.
Qiagen NV shares jumped as much as 20 percent after U.S. laboratory equipment maker Thermo Fisher Scientific launched a 10.4 billion euro ($11.6 billion) bid for the genetic testing company.
Novartis shares rose half a percent. According to the U.S. Department of Justice, Novartis’ generic drugs unit Sandoz has agreed to pay $195 million to settle criminal charges for fixing prices on generic drugs.
Deutz soared 5.2 percent. The diesel engine manufacturer Deutz pledged to step up efficiency measures in 2020 to counter a double-digit fall in revenue and operating profit this year.
Aggreko shares surged 7.3 percent. The global power and energy provider reported full year 2019 profit before tax of 199 million pounds, up 9 percent from 182 million pounds last year.
Bakery chain Greggs rallied 4.4 percent after its pre-tax profit for the 52 weeks ended 28 December 2019 rose to 108.3 million pounds from 82.6 million pounds previous year.
Intertek Group advanced 1.2 percent after posting higher profit in 2019.
Precious metals miner Fresnillo tumbled 3.7 percent after it posted a 63 percent slump in 2019 pretax profit.
Industrial equipment rental company Ashtead Group fell more than 1 percent after reporting a fall in pretax profit for the third quarter of fiscal 2020.
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