BLBG: European Stocks Rebound From 15-Month Low Before Draghi Speaks
Deutsche Bank falls after saying it will report a loss
Stoxx 600 earlier reversed advance of as much as 1.2%
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European stocks rose, after their worst slump since August, as investors awaited comments by European Central Bank President Mario Draghi.
The Stoxx Europe 600 Index added 0.6 percent at 11:02 a.m. in London, after earlier wiping out gains of as much as 1.2 percent. The benchmark tumbled 3.2 percent yesterday as concern intensified for global-growth prospects. Worries over China’s slowdown and plunging oil prices sent the Stoxx 600 into a bear market last week, and down as much as 12 percent this year.
“We’ll get no lasting rebound without some fundamental news that really shifts sentiment,” said Francois Savary, the chief investment officer of Prime Partners SA, a Geneva-based investment manager. “There’s no reason to be overweight equities, but the ECB could have a reassuring impact today. Markets need to hear that the bias of their monetary policy remains accommodative.”
Investors seeking shelter from the global market turmoil are looking to Draghi for hints that ECB officials are gearing up for fresh stimulus as soon as the next meeting in March. He will hold a press conference at 2:30 p.m. in Frankfurt, 45 minutes after the rate decision is announced. The central bank’s additional measures last month left traders disappointed, sending the Stoxx 600 to its worst December since 2002.
Among stocks active on corporate news, Pearson Plc rallied 13 percent after saying it plans to cut about 4,000 jobs, or about 10 percent of the workforce. Logitech International SA jumped 9.6 percent after raising its 2016 sales and profit forecasts.
Banca Monte dei Paschi di Siena SpA jumped 25 percent, after losing almost half of its value over the past three days, as European Union officials signaled they’re ready to speed up the process of setting up an Italian bad bank.
Deutsche Bank AG slid 7.3 percent after Germany’s biggest lender forecast a loss for the fourth quarter after setting aside more money for litigation and restructuring costs.
Saipem SpA declined 6.4 percent after starting a 3.5 billion-euro ($ 3.8 billion) share sale, proceeds of which will be used to pay down its debt to the Eni Group.
