Agencies/London/Mumbai
World stocks rallied yesterday, powered by news of a spurt in US home sales and a weakening dollar that underpinned commodities.
Gains in Europe and on Wall Street followed broadly higher finishes in Asia, where mining stocks were in demand as gold prices jumped to a record high.
Dollar-denominated commodities were in demand as the sliding greenback boosted demand from holders of stronger currencies.
In London the FTSE 100 index rose 1.98% to close at 5,355.5 points while in Frankfurt the Dax added 2.44% to reach 5,801.48. The Paris CAC 40 gained 2.25% to end the day at 3,813.17 points.
Elsewhere there were gains of 2.12% on the Swiss Market Index, 1.98% in Milan, 1.55% in Brussels and 1.89 % in Madrid.
US stocks roared higher at the opening on the strong housing data.
The Dow Jones Industrial Average was up 1.26% at 10,448.07 mid-day, rebounding from a three-session losing streak.
The tech-heavy Nasdaq had risen 1.38% to 2,175.69.
US stocks surged from the opening bell as the dollar weakened with expectations that interest rates would remain at near zero low levels.
In Europe, investor confidence was strengthened by a report that private sector business activity across the eurozone grew at the fastest rate for two years in November.
Earlier in Asia, Sydney closed 0.67% higher. Shanghai finished up 0.92% but sentiment was clouded ahead of China’s annual economic planning meeting at the end of the month, dealers said.
Hong Kong closed 1.41% firmer after four straight losses, as investors sought bargains in Chinese banks and insurers.
India’s stocks rose for a second day as the Bombay Stock Exchange’s Sensitive Index advanced 158.33, or 0.9%, to 17,180.18. The S&P CNX Nifty Index on the National Stock Exchange climbed 1% to 5,103.55. The BSE 200 Index added 0.8% to 2,129.88. India’s rupee gained the most in more than a week. The currency gained 0.4% to 46.4825 per dollar yesterday.
The dollar slid against the euro yesterday on concerns that US authorities may prolong emergency stimulus measures, helping push the price of gold to a record high above $1,700, analysts said.
In late morning trading here, the euro climbed to $1.4969 from $1.4860 late in New York on Friday.
Against the Japanese currency, the dollar strengthened meanwhile to ¥89.15 from ¥88.92 reached late on Friday.
Gold hit $1,174 an ounce in late London trading. It later pulled back to $1,169.50. |
