Europe close: Stocks bounce for a third day
Stock markets across the Continent registered sharp gains as investors drew a measure of comfort from dovish remarks out of another top official at the US central bank.
The Dax-30 ended the day up by 3.18% to reach 10,315.62 points, alongside gains of 3.46% in the Dow Jones Stoxx 600.
A better-than-expected reading on the growth rate for US gross domestic product in the second quarter also served to bolster market sentiment, as did a positive close to trading for Chinese stocks overnight.
Recent volatility in global financial markets “complicates the picture,” the president of the Federal Reserve bank of Kansas City, Esther George, told CNBC.
However, it's “too soon to say it fundamentally changes the picture,” George added.
To take note of as well, today´s bounce in Shanghai stocks may have been the result of government intervention ahead of the 3 September military parade to celebrate Nationalist World War II victory over Japan, according to sources cited by Bloomberg.
The rate of growth in the money supply as measured by the M3 monetary aggregate reached a 5.3% year-on-year pace last month, following an upwardly revised reading of 5% for June (consensus: 4.9%), according to data from the ECB.
The most widely watched component of the report, so-called private sector credit, expanded by 0.7% year-on-year in July, well ahead of a reading of 0% for the previous month.
Front month Brent crude futures finished the day up by 6.6% to $46.18 per barrel on the ICE.
The euro/dollar gave back another 0.63% to end the day at 1.1235 as risk aversion was unwound.