EUROPEAN stocks closed higher

European stocks rose the most in more than two months as the European Central Bank said that interest rates will remain low for an extended period, and Portugal’s political leaders sought to hold their coalition government together.

The Stoxx Europe 600 Index surged 2.3% to 292.09.

National benchmark indexes advanced in every western-European market except Iceland:

The ECB’s President Mario Draghi predicted that interest rates will remain low for an extended period of time. Speaking at a press conference at the central bank’s offices in Frankfurt’s Eurotower, Draghi said that key interest rates will remain at their current levels or lower for as long as necessary. Policy makers left their main refinancing rate at 0.5% at today’s meeting.

In the U.K., the Bank of England signaled that it will leave interest rates at a record low for longer than investors had expected.

Banco Espirito Santo SA rallied after sinking 11% yesterday. 

Taylor Wimpey Plc rose 7.2% as the U.K. housebuilder said its operating-profit margin increased in the first half. 

OC Oerlikon Corp. added 3.5% after completing the sale of its natural-fibers business.

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