ECB Stimulus Talk Ends Brutal Losing Streak For European Stocks

(RTTNews) - European stocks rallied on Friday, trimming steep weekly losses after dovish talk from central bank officials eased fears of a global slowdown.

Benoît Cœuré, a member of the European Central Bank's governing council, said Friday that the central bank was ready offer further stimulus measures if conditions warranted.

At the same time, Bank of England Chief Economist Andrew Haldane said the U.K. interest rates could remain lower at a record low for a longer period than he expected three months ago.

If there is a genuine uncertainty about the path of the economy, the optimal policy response may be to avoid the worst outcomes, Haldane said.

Meanwhile, remarks from Federal Reserve members have diminished speculation about a U.S. interest rate hike early next year.

Instead of tightening, the Fed should consider extending its bond-buying program beyond October in order to see if global headwinds abate, said St. Louis Fed President James Bullard on Thursday.

The Euro Stoxx 50 index of eurozone bluechip stocks gained 3.05 percent, one of the biggest daily advances of the year. Still, the index was down 1 percent for week.

The German DAX rose 3.12 percent and the French CAC 40 gained 2.9 percent, while the FTSE 100 index of the U.K. added 1.85 percent.

In Frankfurt, car makers Volkswagen, BMW and Daimler were up sharply. French auto companies Renault and Peugeot also surged.

Jenoptik fell 1.6 percent after Commerzbank cut the stock to "Hold" from "Add."

Banking stocks surged, led by Societe Generale with a 5.6 percent gain.

Meanwhile, Gemalto lost 11.4 percent after Apple unveiled a new SIM card for its new iPads.

In London, Tullow Oil jumped 8.2, taking back recent losses. Societe Generale raised the stock to "Buy" from "Hold."

Petrofac added 7.3 percent. The oil and gas services provider said it is on track to deliver its profit guidance for 2014.

Rolls Royce plunged 11.3 percent. The engine maker cut its full year revenue outlook, citing project delays and sanctions on Russia.

Travis Perkins, which issued a sales update, slipped 0.9 percent.

TeliaSonera was up 1.4 percent in Stockholm after reporting lower third-quarter profit.

Novartis' new leukemia immune treatment led to the complete remission in 90 percent of patients, a study showed. Shares rose 2.4 percent.