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European stocks add to gains as Fed reassures

European stocks add to gains as Fed reassures
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First Published: Wed, Aug 08 2007. 01 33 PM IST
Updated: Wed, Aug 08 2007. 01 33 PM IST
Reuters
Paris: European stocks rose early on Wednesday, 8 August, adding to the previous session’s sharp gains as worries over the turmoil in the credit market eased after the US Federal Reserve said the crisis would not drag on the broader economy.
At 0713 GMT, the pan-European FTSEurofirst 300 index was up 0.9%, at 1,538.24.
The Fed, which also left interest rates unchanged at a policy meeting, said it still saw moderate economic growth ahead even though credit conditions have tightened.
“The Fed weakened a little bit their tightening bias, we think. They didn’t go neutral, but they acknowledged that some market participants have more difficulties to get credit,” said Achim Matzke, European stock indexes analyst at Commerbank.
“They don’t put any oil into the fire, and that should help stabilise the market.”
Strong corporate results were also boosting sentiment, with Adidas surging 4% after posting a 27% jump in quarterly net income.
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First Published: Wed, Aug 08 2007. 01 33 PM IST