UPDATE 2-European shares post best day since June 2016
Federal Reserve Chairman Jerome Powell also reassured investors concerned about a U.S. economic slowdown, saying the central bank would be sensitive to the downside risks currently priced in the market.
Europe's STOXX 600 rose 2.8 percent, with strong gains across the region's bourses.
Stocks sensitive to trade tensions led the gains.
Mining companies jumped 5.4 percent, the top gainer as copper prices recovered on news of new trade talks between China and the United States.
Autos, which suffered in 2018 from the trade dispute, jumped 4.5 percent.
Outside trade-related moves, Bayer shares climbed 6.7 percent. A ruling by a U.S. judge could restrict evidence favoring the plaintiffs in lawsuits alleging Bayer's glyphosate-based weed killer causes cancer.
ProsiebenSat 1 shares fell 3.4 percent after Morgan Stanley cut its price target on the stock, in a negative note on European TV highlighting rising competitive pressure from subscription video on demand platforms.
As the fourth-quarter results season approaches, analysts remain pessimistic about European earnings. They have cut earnings forecasts continuously since September 2018.
"If we're going to see moderate growth in 2019 but nothing too exciting, are market participants willing to be outside risk assets for that entire time?"
(Reporting by Helen Reid; editing by Larry King and Mark Potter)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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