European Stocks Climb


European stocks rallied, with the Dow Jones Stoxx 600 Index rebounding from its worst week on record, as governments in Europe, the U.S. and Asia agreed to support banks.

UBS AG, Deutsche Bank AG and ING Groep NV jumped more than 10 percent after European leaders said they would guarantee new bank debt. Total SA gained 6.7 percent and BHP Billiton Ltd. rose 7.9 percent as oil climbed from a 13-month low and copper advanced from the lowest price in more than two years.

The Stoxx 600 advanced 6.7 percent to 218.8 at 3:04 p.m. in London. The index has dropped 40 percent this year as concern that frozen credit markets will trigger a recession erased about $28 trillion in value from global stock markets.

Financial firms have reported $635 billion in losses and writedowns from U.S. mortgage-related investments since the beginning of last year.

Stocks increased after the U.S. Federal Reserve said central banks will offer financial institutions unlimited dollar funds and Europe pledged to guarantee bank debt issues and permit governments to buy stakes and recapitalize some distressed financial companies.

National benchmark indexes climbed more than 4 percent in 16 of the 17 western European markets that were open. The U.K.'s FTSE 100 jumped 4.8 percent. Germany's DAX advanced 7.7 percent. France's CAC 40 increased 6.8 percent as Total SA gained.


TradingEconomics.com, Bloomberg.com
10/13/2008 7:48:48 AM