LONDON, May 19 (Reuters) - European shares gained ground on Tuesday after a leading European Central Bank (ECB) official said the ECB would front-load an asset purchase scheme, aimed at boosting growth, over the coming two months.
Benoit Coeure, an executive board member at the ECB, said the ECB would front-load asset purchases in May and June due to low market liquidity in July and August.
Coeure added that a recent European government bond market selloff was a normal correction but the rapidity of the adjustment was worrisome and indicated “extreme volatility” in the market.
Coeure’s comments pushed down the euro and lifted European stocks. The pan-European FTSEurofirst 300 index rose 1.3 percent, while Germany’s DAX gained 1.6 percent.
Among individual stocks, media group Reed Elsevier rose by 2.2 percent after Goldman Sachs raised its rating on the stock to “buy” from “neutral”.
However, Vodafone fell 1.9 percent as some traders said that the mobile network operator’s guidance had been slightly below forecasts, even though Vodafone returned to quarterly sales growth. (Reporting by Sudip Kar-Gupta; Editing by Atul Prakash)