US and EU stocks advance expanding their rally

US stocks surged for a second day as Chinas bank shadowing worries eased. First quarter GDP report for US missed estimates which led investors to speculate about government reducing the bond-purchasing program. The S&P 500 increased 1% to 1,603.26 at 4 p.m. in New York. The index has added 1.9% for the last two days, trying to offset its record decline of June 24th. The Dow climbed 149.83 points, or 1%, to 14,910.14 yesterday. Volume of shares traded was in line with three month average.

“Weaker economic numbers may be met with favor by the market because it can suggest that the Fed can slow the tapering process or not taper if the economy looks weaker than expected.” commented for Bloomberg James Gaul, a portfolio manager at Boston Advisors LLC.

European stocks also advanced with most benchmark indexes expanding into two days of positive numbers. German consumer confidence beat estimates and initiated stock advance of European indexes. The Stoxx 600 index gained 1.7% to 284.54 at the close of trading yesterday. The benchmark index has added 3.2% over the past two days, for the largest jump since almost a year. However,it has still declined 8.4% sinc

e May 22, when Federal Reserve Chairman Ben S. Bernanke commented on the possibility of tapering stimulus in case of stable economic growth of the United States. France’s CAC 40 raised 2.1%, the most in two months. Germany’s DAX added 1.7% and the U.K.’s FTSE 100 advanced 1%.

In US corporate news, all 10 industries included in S&P 500 climbed with health-care companies leading the pack. UnitedHealth and Johnson & Johnson surged by 1.7% and 1.9% respectively. Microsoft increased 2% to $34.35 due to companys 3-day conference in which a peek of the new Windows Blue is expected to be released. Boeing added 2.1% to $100.75.

Colruyt SA, the Belgian retailer jumped the most in almost a year after reporting earnings better than estimates. Direct Line Insurance Group Plc (DLG), the U.K.’s biggest home and motor insurer, added 3.8% after saying it will cut jobs. GSW Immobilien AG, Berlin’s largest residential landlord by market value, advanced 3.8% after it became clear that companys chairman and chief executive officer will leave.