The Federal Reserve may introduce a third round of quantitative easing early next year as U.S. inflation cools, Alain Bokobza, head of asset-allocation strategy at Societe Generale, said at a press conference in Beijing today.
European stocks climbed for a third day, led by technology companies, after Texas Instruments Inc. agreed to buy National Semiconductor Corp., fueling optimism that company spending will push shares higher.
German stocks were little changed as a report showed U.S. housing starts rose less than forecast last month and investors awaited signs from the Federal Reserve on whether it will begin to pare stimulus measures immediately.
Money managers will increase direct lending to Europe’s companies to benefit from higher yields and better guarantees as the region’s banks pull back from keeping debt on their balance sheets, according to Societe Generale SA.
Global stocks rallied, ending the longest slump since November, as JPMorgan Chase & Co. surged after reporting earnings and speculation grew that China and Europe will boost stimulus efforts. The euro rebounded from a two-year low, while cotton and nickel led commodities higher.