European Stocks Higher and The Euro Strengthened
European stocks closed higher and the euro strengthened on Thursday local time, helped by the success of the issuance of bonds and US data that Spain strongly calms anxiety over eurozone debt crisis.
Dealers said sentiment also got a boost from a manufacturing survey data and the latest euro zone services indicating that a sharp slowdown in the last quarter is likely to wane, at least in Germany and France.
A series of indicators in the work and activities of the United States, most notably a sharp decline in new unemployment claims, were greeted after huge losses on Wednesday triggered by worries over the new euro zone debt crisis.
In London, the FTSE-100 index of leading companies closed up 0,63% at 5,400 points,85. In Paris, the CAC-40 index up 0.76% to,73 points and 2.998 in Frankfurt, the DAX-30 index rose 0.98% to, 5730, 62 points.
Other markets had the same advantage, up 0.84% in Madrid and Milan gain 1,37%.
In afternoon trading, the single European currency advanced to 1,3024 dollars from 1,2979 dollars in New York late Wednesday, when it reached a low of 11-month 1,2946 dollars, after Italy had to pay very high interest rates to raise fresh funding in the market.
Spain summons 6.0 billion euro (7.8 billion dollars), well ahead of the planned 2.5-3.5 billion euros even though the interest is paid to the buyer remains high in more positions from 5.0 percent in Treasury bonds 9-year-old and 10-year bonds.
“After considering everything, well digested bond auction by the market, especially given the volatility of the bond market today, and it helps give Europe an inducement stock,” said analyst City Index, Joshua Raymond.
“Investors made it clear that it was less satisfied with the fiscal position of Spain than Italy,” said analyst Jane Foley, of Rabobank, told AFP.
In New York, US stocks rose but lower than the highest earlier after three consecutive sessions weakened, supported by a sharp decline in weekly us jobless claims.
The leading stock (blue chip) the Dow Jones Industrial Average climbed 0,63% and the Nasdaq technology composite index rises 0.18% at about 16.45 GMT.
U.S. initial jobless claims dropped 19,000 in the week ending 10 December from the previous week, the lowest figure since 366.000, week ending May 10, 2008.
“This is the big news of the unexpected,” said Ian Shepherdson, Chief US economist at High Frequency Economics. “If the claims can stay at this level, the growth of wage payments will be strengthened within a month or so.” Other figures showed the US trade deficit falls to lowest level in nearly two years, thanks largely to rising exports, while manufacturers in Philadelphia and New York area is strong.