LONDON/PARIS, Feb 12 (Reuters): European share indexes hit multi-year
highs on Thursday, boosted by a Ukraine peace deal and new economic
stimulus measures in Sweden.
The leaders of Germany, France, Russia and Ukraine agreed a deal to end fighting in eastern Ukraine, participants at the summit talks said on Thursday.
Germany's DAX-which features companies that sell cars and other products to Russia-rose 1.6 per cent to approach the DAX's earlier record highs, while France's CAC rose 1 per cent to its highest level in around seven years.
Sweden's benchmark OMXS30 equity index also hit a record high after Sweden's central bank moved its key interest rate into negative territory and launched bond purchases in a process known as "quantitative easing" (QE) to bolster its economy.
"The Ukraine situation remains volatile but the medium-term outlook for European equities is positive. Investors could look to take profits in the short term, but European equities should be able to outperform US equities," said Francois Savary, chief investment strategist at Swiss bank Reyl.
The pan-European FTSEurofirst 300 index rose 0.9 per cent to its highest level in seven years and the euro zone's Euro STOXX 50 index advanced by 1.5 per cent.
The Greek stock market also rose 3.8 per cent as investors held out hope that the new Greek government could reach a deal with its international creditors over the country's bailout.
The leaders of Germany, France, Russia and Ukraine agreed a deal to end fighting in eastern Ukraine, participants at the summit talks said on Thursday.
Germany's DAX-which features companies that sell cars and other products to Russia-rose 1.6 per cent to approach the DAX's earlier record highs, while France's CAC rose 1 per cent to its highest level in around seven years.
Sweden's benchmark OMXS30 equity index also hit a record high after Sweden's central bank moved its key interest rate into negative territory and launched bond purchases in a process known as "quantitative easing" (QE) to bolster its economy.
"The Ukraine situation remains volatile but the medium-term outlook for European equities is positive. Investors could look to take profits in the short term, but European equities should be able to outperform US equities," said Francois Savary, chief investment strategist at Swiss bank Reyl.
The pan-European FTSEurofirst 300 index rose 0.9 per cent to its highest level in seven years and the euro zone's Euro STOXX 50 index advanced by 1.5 per cent.
The Greek stock market also rose 3.8 per cent as investors held out hope that the new Greek government could reach a deal with its international creditors over the country's bailout.
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