European stocks rebound early on Fed, Obama relief

PARIS, Jan 28 (BestGrowthStock) – European equities gained 1.3
percent in early trade on Thursday, bouncing back from a sharp
one-week slide after U.S. President Barack Obama moderated his
tone on bank restrictions in the State of the Union speech.

Banks, beaten down over the past week by worries over the
White House’s plan to curb risk-taking by financial
institutions, were among the top gainers on Thursday.

UBS (UBSN.VX: ) gained 2.3 percent, Barclays (BARC.L: ) added
3.8 percent and Societe Generale (SOGN.PA: ) surged 2.4 percent.

The pledged by the U.S. Federal Reserve to keep interest
rates near zero for “an extended period” also lifted sentiment.

At 0805 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was up 1.3 percent at 1,027.44 points. The index
had tumbled 5.2 percent over the past six sessions.

“The violence of the sell-off has been surprising, investors
panicked. But I don’t think this has been a change in trend.
Macro data is pointing into the other direction,” said Jacques
Henry, analyst at Louis Capital Markets, in Paris.

“The big question remains: ‘How will central banks remove
the quantitative easing?’ and with last night’s Fed comments,
the issue has been pushed away. So for now, loose monetary
policy is good for the banks.”

Investment Research

(Reporting by Blaise Robinson)

European stocks rebound early on Fed, Obama relief