European Shares Rally After Summers Pulls Out of Running for Fed Chief, US and Russia Agree on Syria Deal

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European stocks rose after Lawrence Summers withdrew his name from consideration for the Federal Reserve Chairman spot.

Summers is seen as more hawkish than current Fed Chairman Ben Bernanke and if chosen, may have tightened more aggressively than markets would have liked.

The frontrunner for the position now looks to be Fed Vice Chair Janet Yellen, who is seen more dovish and thus, more favorable for the markets.

The U.S. and Russia also agreed on a plan to destroy Syrian chemical weapons, providing a relief to markets.

Starting on Tuesday, the Federal Open Market Committee meets for two-days to determine monetary policy. Most economists expect the FOMC to cut slightly by $10 billion its bond-buying program.

In ADR news, Fresenius ( FMS ) was upgraded by MainFirst Bank AG to outperform from underperform and lifted the 12-month price target to 120 euros from 92 euros.

Sanofi ( SNY ) is lifted by Barclays to overweight from equal weight on expectations the U.S. insulin market will grow, which bodes well for the company's diabetes drug Lantus.

Novo Nordisk AS ( NVO ) is upgraded by Barclays to overweight from underweight.

The FTSE-100 was last up 0.51% at 6,622.86, the DAX up 1.22% at 8,613 and the CAC-40 up 0.92% at 4,152.22.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: FMS , NVO , SNY

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