European Stocks Rally As Draghi Pledges To Preserve Euro

26.07.2012 13:32

Bloomberg: European stocks climbed after European Central Bank President Mario Draghi said policymakers will do whatever it takes to preserve the euro. U.S. index futures and Asian shares rose.

Banco Santander SA (SAN) led a rally in banks, advancing 4.5 percent. Unilever (UNA) gained 5.4 percent after sales beat analyst estimates. France Telecom SA (FTE) added 2.4 percent after the company also reported results that topped analyst estimates.

 

The Stoxx Europe 600 Index (SXXP) rose 0.8 percent to 252.40 at 11:46 a.m. in London after swinging between gains and losses at least 10 times today. Standard & Poor’s 500 Index futures expiring in September gained 0.5 percent, while the MSCI Asia Pacific Index climbed 0.8 percent.

“I truly believe that when it all comes together, policy makers don’t want the euro to break up and ultimately will take the necessary decisions to ensure that it keeps together,” said Kevin Lilley, a European fund manager at Old Mutual Asset Managers U.K. in London, which has about 4 billion pounds ($6.2 billion) in assets under management. “The market has already been pricing in some element of a break up.”

Stocks rose, halting a four-day selloff, after Draghi said the ECB will do what it takes to ensure the euro’s survival.

“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” Draghi said in a speech in London today. “And believe me, it will be enough.”

To contact the reporter on this story: Sarah Jones in London

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