European Stocks Extend Rally, Led By Auto Makers

(RTTNews) - European stocks surged higher for a second straight session on Monday amid hopes that conflicts in Ukraine and the Middle East can be contained.

Russian war planes have finished military exercises near Ukraine, according to reports.

Renewed speculation that the U.S. Federal Reserve will keep interest rates at zero for another year has also generated hunger for equities.

U.S. Federal Reserve Vice Chair Stanley Fischer said that U.S. and global recoveries have been "disappointing" so far and the latest recession may have permanently hampered economic potential.

The Euro Stoxx 50 index of eurozone bluechip stocks picked up 1.4 percent, and is nearly flat compared to a week ago.

The German DAX gained 1.9 percent, the French CAC 40 added 1.2 percent and the UK's FTSE 100 inched up 1 percent.

Auto related stocks performed particularly well, extending strong gains from Friday. Mining stocks also rose.

In corporate news, Banco Popolare SC surged 8.3 percent after the Italian lender posted a surprising profit in the second quarter.

Bilfinger Berger rose 3.3 percent. The engineering group reported first-half results, and sees a significantly stronger second half.

Balfour Beatty added 2.5 percent after rejecting a revised offer from Carillon, whose shares are up 1.2 percent.

Synthomer picked up 8.3 percent after announcing 6-months results.

Bellzone Mining lost 40 percent after the company said it has not been able to secure long-term financing.