European stocks extended a seven-year high as the European Central Bank was said to plan further stimulus measures.
The Stoxx Europe 600 Index rose 0.6 percent to 358.12 at the close of trading in London, reversing earlier losses after two euro-area central-bank officials said the ECB Executive Board has recommended asset purchases of 50 billion euros ($58 billion) a month until December 2016. The equity measure has rallied 5.4 percent in the past five days on optimism that the ECB will step up stimulus measures at its Jan. 22 meeting.
“Investors are readjusting their expectations ahead of tomorrow’s ECB meeting,” Ralf Zimmermann, an equity strategist at Bankhaus Lampe KG in Dusseldorf, Germany, said in a phone interview. “We’ve seen a significant rebound in markets. There are some downside risks.”