By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Stock markets climbed across Europe on
Tuesday following a report that the European Central Bank is
considering buying corporate bonds to further stimulate the
eurozone's ailing economy.
The advances came following a turbulent trading day on Monday,
when major benchmarks closed with sharp losses. Last week, many
indexes slumped to one-year lows amid concerns the eurozone could
slip back into recession after Germany showed renewed signs of
economic weakness.
ECB stimulus: Several media reported the ECB may start to buy
corporate bonds in the secondary market to beef up its stimulus
program. Citing people familiar with the situation, Reuters
reported the ECB could decide on the purchases as soon as December,
and the first purchases could occur in early 2015.
"If [the] reports are true, then the ECB is moving even closer
to outright QE," said analysts at Brown Brothers Harriman in a note
on Tuesday.
The Wall Street Journal, however, said that no specific plans
have been discussed and that there is no timetable. A spokesperson
from the ECB told MarketWatch that the Governing Council "has taken
no such decision" about purchasing corporate bonds.
Tuesday's market reaction: The euro (EURUSD) dropped on the ECB
news, trading at $1.2723, down from $1.2800 late Monday.
The Stoxx Europe 600 index gained 2.1% to close at 323.74,
bringing it into positive territory for the week.
Germany's DAX 30 index added 1.9% to 8,886.96, while France's
CAC 40 index rose 2.3% to 4,081.24. The U.K.'s FTSE 100 index
picked up 1.7% to 6,372.33.
Earnings boost: Swiss biotech company Actelion Ltd. jumped 3%
after it said strong sales of a new drug helped lift earnings in
the third quarter, prompting an upgrade to its full-year
guidance.
Akzo Nobel NV climbed 4.9% after the Dutch painting and
chemicals company said profits rose 32% in the third quarter.
ASOS PLC surged 16% after the online fashion retailer reported a
27% rise in full-year retail sales.
Swedbank AB put on 4.7% after the bank reported
better-than-expected third-quarter earnings. (Read more about the
day's big stock moves here:
http://www.marketwatch.com/story/asos-surges-reckitt-benckiser-slips-europes-big-stock-movers-2014-10-21.)
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