Traders are pictured at their desks in front of the German share price index DAX’s board at the Frankfurt Stock Exchange yesterday. The benchmark rose 0.77% to 9,861.21 points, as official data confirmed the German economy grew 0.1% in the third quarter, narrowly avoiding a recession.
AFP
Lingering eurozone stimulus hopes lifted European stock markets yesterday, with sentiment buoyed also by upbeat German data and bumper gains elsewhere, dealers said.
London’s benchmark FTSE 100 index closed up just 0.02% to 6,731.14 points and the Paris CAC 40 index gained 0.32% to 4,382.31 compared with Monday’s close.
Frankfurt’s DAX 30 rose 0.77% to 9,861.21 points, as official data confirmed that the German economy grew 0.1% in the third quarter, narrowly avoiding a recession.
ECB chief Mario Draghi last week signalled readiness to act quickly to deter deflation, sparking fresh stimulus hopes.
The comments, combined with China’s surprise rate cut, gave markets a shot in the arm on Friday and have continued to boost share prices.
The French market was also lifted by better than expected data on business climate, with the national data institute reporting a three-point rise on the index to 94 although analysts had expected it to come in at 92.
Michelin topped the risers board, soaring 2.61% to €74.70.
Credit Agricole was the next biggest gainer with a 2.49% jump to €11.12.
“Stocks in Europe have been on a rip since Mario Draghi twice mentioned the prospects of further monetary easing in the eurozone last week and continued higher today” with the latest German data, said Jasper Lawler, an analyst at CMC.
Wall Street stocks edged higher in early trade, adding to Monday’s records after the Commerce Department unexpectedly raised its estimate for third-quarter US economic growth.
About 25 minutes into trade, the Dow Jones Industrial Average stood at 17,826.92, up 9.02 points (0.05%).
The broad-based S&P 500 gained 1.73 (0.08%) to 2,071.14, while the tech-rich Nasdaq Composite Index added 8.56 (0.18%) to 4,763.45.
“Where GDP numbers are concerned, it looks like a case of ‘be good, but not too good’, since any sign of overheating in the US is likely to bring the Fed hawks to the fore,” said Chris Beauchamp of the IG consultancy.
In London foreign exchange deals yesterday, the euro was trading at $1.2474, up from $1.2439 late in New York on Monday.
The European single currency eased up to 79.35 British pence from 79.21 Monday. The British pound rose to $1.5718 from $1.5704.
In London, shares in Petrofac recovered to 891 pence after the British energy services group saw the price collapse by 26.45% on Monday following a gloomy profits warning that blamed slumping oil prices.
