European shares rose to shed earlier losses as Mario Draghi, the European Central Bank President, said policy makers agreed to further stimulus support for the euro-region economy if needed.
The Stoxx Europe 600 Index jumped 0.8% to 339.2 as of 2:02 in London. The index had earlier dropped 0.6%. The blue chip index climbed yesterday for the first time in three days as firms such as Marks & Spencer Group Plc posted earnings that were better than anticipated.
Draghi said officials are ready to prop the economy further if necessary, as he suggested policy may reduce growth projections for next month.
According to Bloomberg, Draghi said the Governing Council had “tasked relevant euro system committees with the timely preparation of further measures to be implemented if needed. “The Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate,” he said at a press conference in Frankfurt on Thursday.
The ECB boss said the bank intended to take the size of its balance sheet to its levels in early 2012.
The euro-area economy, which has not been doing too well, and increased stimulus from the Bank of Japan added pressure on policy makers in Europe to implement more measures that prop the economy.
The Stoxx 600 suffered its worst drop in seven months after October’s ECB summit as Draghi failed to demonstrate to investors a concrete plan to check deflation.
Adidas AG went up 5.3%. The German maker of sporting goods said its net income dropped to 282 million euros or ($350 million). The figure surpassed the 268.4 million euros analysts in a Bloomberg survey had predicted.
HeidbergCement AG advanced 5.6% to 57 euros. The third-biggest cement maker in the world said its earnings for the third quarter soared 9.8% as it hiked prices in North America.
Draghi’s comments pushed France and German markets 1.3% higher, the Wall Street Journal reported.
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