European stock markets rallied today, posting their biggest daily gain in two months, buoyed by upbeat fourth-quarter earnings reports, while Volkswagen shares jumped on the potential listing of its luxury car unit Porsche.
The European STOXX 600 ended the trading session up 1.7 percent, and shares of automakers led the gains as their index rose 4 percent.
The benchmark index recovered about 0.6 percent of its value this month after falling 4 percent in January.
According to Archyde.com, Volkswagen shares rose 6.1 percent while Porsche shares jumped 8.2 percent. Both companies were also the biggest backers of the German DAX Index, which closed up 1.6 percent.
The broader European sectors were supported by optimism about strong earnings from several companies, including France’s Amondi Asset Management Fund and Norway’s equino energy.
Technology stocks rose 2.9 percent as pressure from higher bond yields eased while bank stocks gained 0.9 percent to hover around their highest level since 2108 as the sector would benefit from expected interest rate increases.