European Stocks Rise on Dovish Draghi Remarks

LONDON ( The Deal) -- European stocks rose Monday after European Central Bank President Mario Draghi signaled that central bankers are prepared to tweak monetary policy if needed and as German business confidence fell for the fourth straight month. 

In Frankfurt, the DAX was up 1.06% at 9,438.11, while in France the CAC 40 added 0.86% to 4,289.51. The London Stock Exchange was closed for the U.K. bank holiday after ending last week at 6.775.25, down 0.04% from Thursday. 

Investors were mainly in a buying mood after Draghi signaled that policy makers are ready to act if inflation drops further in the eurozone, saying that it would be "helpful" if fiscal policy could play a greater role alongside monetary policy. 

"The package of measures announced by the ECB in June should provide the intended boost to demand, and we stand ready to adjust our policy stance further," he told global peers last Friday in Jackson Hole, Wyo. He also said that central bankers would be prepared to use "unconventional instruments" to safeguard medium- to long-term inflation expectations in the eurozone. 

On Monday, a drop in Germany's Ifo Business Climate Index added to concerns about the pace of recovery in Europe's largest economy. Confidence fell to 106.3 points in August, from 108.0 in July, with the manufacturing index dropping to its lowest level since July 2013 and the wholesaling index now at its lowest in a year. 

Across the continent, corporate news pushed several stocks into positive territory. 

In Madrid, Bankia rose 0.62% to 1.45 euros, following a Sunday report that the government won't sell any more shares in the nationalized lender until November, following the publication of stress test results by the European Central Bank. 

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