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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.

Gold prices rose following the incident in North Korea to attack South Korea. This surge in response to investor concerns on the conflict.

Gold for December delivery closed up U.S. $ 19.8 to U.S. $ 1377.7 per ounce on the Comex division of the New York Mercantile Exchange. While gold prices Tuesday trade with the highest level of U.S. $ 1382.90 and low of U.S. $ 1355.60.

Precious metals were a safe investment in a North Korean attack, and increased state debt concerns in Ireland, Portugal and Spain.

As for the silver commodities recorded a rise of U.S. $ 0.11 to U.S. $ 24.07 per ounce for the December contract.

As is known, yesterday attacked Yeonpyeong Island North Korea, South Korea. The tension that began when North Korea warns South not to hold military exercises in waters near the island of Yeonpyeong. Areas in the Yellow Sea was still in dispute between the two countries.

The North’s warning was ignored by the South, who feel entitled to use waters for war exercises. Then, shortly after the South Korean military exercises began, the rumble of artillery fire from the North. The problem is, the shot did not lead to the location of military exercises, but to Yeonpyeong Island, inhabited by civilians and military.