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The Fed’s Evans Spoke in Japan, Comments Helped to Boost Equities in Asia and Europe


Most European stocks rose after Federal Reserve Bank of Chicago President Charles Evans said the central bank should continue to support economic recovery. U.S. index futures were little changed, while Asian shares excluding Japan climbed.

Electricite de France SA jumped 4.4 percent after the French government agreed to compensate EDF fully for the deficits incurred from its mandatory public-service investments. Cie. de Saint-Gobain SA advanced 2.7 percent after Ardagh Group offered to buy its glass-container unit for $1.7 billion. TNT Express NV (TNTE) plunged 40 percent after United Parcel Service Inc. said it expects regulators to block its takeover of TNT.

The Stoxx Europe 600 Index added less than 0.1 percent to 287.29 at 11:27 a.m. in London as two shares on the measure gained for every one that fell. The equity benchmark dropped last week amid the highest valuation in 11 quarters and concern that quickening inflation in China will limit the scope for economic stimulus. Futures on the Standard & Poor’s 500 Index expiring in March climbed less than 0.1 percent today, while the MSCI Asia Pacific Excluding Japan Index advanced 0.5 percent.

“Despite the Federal Open Market Committee minutes earlier this month giving traders a shock reminder that the unlimited quantitative easing wasn’t a permanent monetary policy and may one day end, Evans reassured traders that the policy would remain in place until well after the economy got back on track to self sustainability,” Jonathan Sudaria, a trader at Capital Spreads in London, wrote in a note.

The number of shares traded on the Stoxx 600 companies was 30 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.

The U.S. government should put “in place policies that slowly but surely bring the prospects of future revenues into balance with future spending,” Evans said in remarks in Hong Kong today. “Under this scenario, monetary policy has an important contribution to make.”

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