The Total logo is seen at its headquarters in the financial and business district of la Defense in Courbevoie near Paris yesterday. Shares in Total rebounded by more than 2.6% to €44.07, having dived by 2% in earlier deals following news of the accidental death of its chief executive Christophe de Margerie.
AFP
European stock markets shot up yesterday after surprisingly good Chinese economic growth data boosted optimism over the global economic outlook, dealers said.
Equities swung higher following the upbeat news in the latest wild swings of the past week fuelled by fears over the state of the world economy.
London’s benchmark FTSE 100 index of top companies shot up 1.33% from Monday’s closing level to stand at 6,350.36 points in afternoon trading.
Frankfurt’s DAX 30 index climbed 1.69% to 8,865.48 points, while the CAC 40 in Paris jumped 2.04% to stand at 4,072.56.
Shares in French oil and gas giant Total meanwhile rebounded by more than 2%, having dived by 2% in earlier deals following news of the accidental death of its chief executive Christophe de Margerie. Total shares later stood 2.6% higher at €44.07.
In Paris, IG France analyst Alexandre Baradez said: “The market has accelerated on reports that the European Central Bank could buy bonds issued by companies, but there has been no official confirmation of this.”
He said: “Currently, central banks hold sway on the markets and any sign concerning the purchase of assets is likely to move the indices.”
Berenberg Bank economist Christian Schulz said that with the eurozone’s rough patch threatening to get even rougher, that the ECB may be looking beyond purchases of asset-backed securities and covered bonds.
Europe’s mining and resources sector forged higher on the back of the data, because Asian powerhouse China is a key consumer of metals.
The biggest gainer in Paris was global steel making giant ArcelorMittal, whose share price rose 5.2% to €10.10.
In Frankfurt, Thyssenkrupp gained 3.2% to €18.32.
On the downside in London, shares in Reckitt Benckiser sank 1.5% to 5,035.25 pence after the British household goods firm warned annual sales would be towards the lower end of forecasts, after a weaker-than-expected third-quarter.
Apple’s strong earnings helped push US stocks higher at the open.
The Dow Jones Industrial Average rose 0.46% to 16,474.39 points after five minutes of trading.
The broad-based S&P 500 climbed 0.84% to 1,920.03, while the tech-rich Nasdaq Composite Index jumped 1.13% to 4,364.77.
Apple, the biggest US company by market capitalisation, rose 3.1% as fourth-quarter profits jumped 13% to $8.5bn on strong iPhone sales.
In foreign exchange trading, the euro slipped to $1.2759 from $1.2800 late in New York on Monday.
The European single currency slid to 78.92 British pence from 79.17 pence. The pound edged up to $1.6165 from $1.6163 on Monday.
On the London Bullion Market, the price of gold dipped to $1,251.75 an ounce from $1,253.91.
