LONDON, July 11 European shares rose on
Thursday, led by growth-sensitive stocks after the chairman of
the U.S. Federal Reserve outlined his vision for continued
monetary accommodation in the near-term.
The pan-European FTSEurofirst 300 rose 0.9 percent
to 1,120.38, its highest level in a month and a half, after Ben
Bernanke said that a "highly accommodative policy is needed for
the foreseeable future" in response to questions on Wednesday
His words spurred risk assets after a mixed market reaction
to the initial release of the Fed meeting's minutes. Basic
resources, sensitive to sentiment towards the economy,
were the top sectoral gainers, up 2.8 percent.
"It was took the Q&A for us to get the clear signal from
Bernanke that he thought more stimulus is needed," Ioan Smith,
managing director at KCG Europe, said.
"My base case was always that the market had got ahead of
itself in terms of pricing in how soon tapering was going to
occur," adding that the words 'foreseeable future' were the key
in tempering expectations for an early withdrawal of stimulus.
The Euro STOXX 50 surged up 1.3 percent to
2,694.84, well above the June 19 close at 2,684 just before the
Fed confirmed it was looking to slow asset purchases by the end
of the year, sending shares sharply lower in the following days.