Global stocks rise af­ter Draghi stim­u­lus com­ments


Global stocks climbed for a sec­ond day as Euro­pean Cen­tral Bank Pres­i­dent Mario Draghi sig­naled the con­tin­u­a­tion of mon­e­tary stim­u­lus. U.S. fu­tures were lit­tle changed while Asian shares ad­vanced.

Bayer AG (BAYN) in­creased 1.3 per­cent af­ter say­ing sales will rise 4 per­cent to 5 per­cent this year. Deutsche Telekom AG (DTE) de­clined 0.7 per­cent as Ger­many's largest tele­phone com­pany re­ported fourth-quar­ter earn­ings that missed an­a­lysts' pro­jec­tions. The Stoxx Europe 600 In­dex gained 0.5 per­cent to 288.65 at 8:24 a.m. in Lon­don, ex­tend­ing the gauge's ad­vance this year to 3.2 per­cent. Stan­dard & Poor's 500 In­dex fu­tures added 0.1 per­cent, af­ter the bench­mark in­dex rose 1.3 per­cent yes­ter­day as Fed­eral Re­serve Chair­man Ben S. Ber­nanke said re­cent in­creases in some in­ter­est rates may sig­nal the U.S. econ­omy is gain­ing vigor. The MSCI Asia Pa­cific In­dex rose 1.4 per­cent as Ja­panese Prime Min­is­ter Shinzo Abe nom­i­nated a new cen­tral bank gov­er­nor amid spec­u­la­tion he will push for more mon­e­tary stim­u­lus.

"Ben Ber­nanke trig­gered a rally as he reaf­firmed his com­mit­ment to main­tain­ing stim­u­lus ef­forts un­til un­em­ploy­ment came back to a tar­get level as he tes­ti­fied be­fore congress," Jonathan Su­daria, a trader at Cap­i­tal Spreads in Lon­don, wrote in an e-mail. "Mario Draghi poured fur­ther fuel on the fire as he re­leased a sim­i­larly dovish set of com­ments."

The vol­ume of shares chang­ing hands in Stoxx 600listed com­pa­nies was 7.4 per­cent greater than the av­er­age of the last 30 days, ac­cord­ing to data com­piled by Bloomberg.

Draghi sig­naled the bank has no in­ten­tion of tight­en­ing mon­e­tary pol­icy any­time soon with in­fla­tion pro­jected to "sig­nif­i­cantly" un­der­shoot its 2 per­cent tar­get next year.

While the ECB's bal­ance sheet may shrink nat­u­rally as con­fi­dence re­turns to fi­nan­cial mar­kets and banks re­pay emer­gency loans, pol­icy mak­ers are far from con­sid­er­ing an exit from mon­e­tary stim­u­lus, Draghi said at an event in Mu­nich late yes­ter­day.

Italy is headed for a broad coali­tion government as bond­hold­ers pres­sure Pier Luigi Ber­sani and Sil­vio Ber­lus­coni to set aside their ri­val­ries and form a part­ner­ship, said Fi­nance Un­der­sec­re­tary Gian­franco Po­lillo. A joint government be­tween Ber­sani's Demo­cratic Party and the forces led by Ber­lus­coni, a three-time former pre­mier, is "the only pos­si­ble way," Po­lillo said late yes­ter­day in a tele­phone in­ter­view. In the US, data at 8:30 a.m. New York time may show the U.S. econ­omy ex­panded at a re­vised 0.5 per­cent an­nu­al­ized pace in the fourth quar­ter from an ini­tial 0.1 per­cent con­trac­tion, ac­cord­ing to the me­dian forecast of 85 econ­o­mists in a Bloomberg News sur­vey. An­other report may show ini­tial job­less claims dropped last week. Ber­nanke yes­ter­day said the cen­tral bank's eas­ing poli­cies are help­ing to im­prove de­mand for homes and cars, and that the hous­ing mar­ket is re­cov­er­ing.

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