* Euro STOXX 50 up 0.9 pct
* Draghi comments raise expectations of more easing
* Draghi offsets negative pressure from weak Ifo number
* CAC up 0.9 pct in spite of French govt resignation
* London stock market closed for public holiday
By Sudip Kar-Gupta
LONDON, Aug 25 European shares rose on Monday,
as prospects of new stimulus measures from the European Central
Bank enabled the region's stock markets to shrug off weak German
data and the resignation of the French government.
European Central Bank President Mario Draghi, speaking at a
global central banking conference in Jackson Hole, Wyoming, said
late on Friday that the ECB was prepared to respond with all its
"available" tools should inflation drop further.
Draghi's comments helped offset negative pressures from weak
German Ifo economic data on Monday, which showed that German
business sentiment dropped for a fourth straight month in
August, and from the French government's resignation.
"The stock markets are evaluating the prospect of possible
monetary easing from the ECB as more important than the
disappointing Ifo figures and French political troubles," said
Carlo Alberto de Casa, senior market analyst at ActivTrades.
The euro zone's blue-chip Euro STOXX 50 index
was up by 0.9 percent at 3,127.39 points.
Germany's DAX - which remains down by around 6
percent from an all-time high of 10,050.98 points set in late
June - also rose 1 percent to 9,435.59 points.
The London stock market was closed for a public holiday.
FRENCH POLITICAL PRESSURES
French Prime Minister Manuel Valls presented his
government's resignation on Monday a day after Economy Minister
Arnaud Montebourg had called for new economic policies, and
questioned neighbour Germany's "obsession" with budgetary
Nevertheless, France's CAC was up by 0.9 percent,
with some investors saying that a stronger and more unified
French government might emerge, more committed to President
Francois Hollande's deficit-cutting measures that have been
aimed at strengthening the French economy.
"The new government should be more unified. Hollande has
shown he will not change course," said Francois Savary, chief
investment officer at Swiss bank Reyl.
Savary said he would not buy equities at current levels,
pointing to recent weak European economic data.
However, AXA Investment Managers' chief strategist Franz
Wenzel said Draghi's position remained supportive for the
region's stock markets.
"The key message is that Draghi stands ready for more action
if needed. Whether they're going to do quantitative easing
remains to be seen, but we're fairly confident that the
financial engineers at the ECB will find other tools," said
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up
(Additional reporting by Atul Prakash; Editing by Susan Fenton)