Euro stocks soar on Fed outlook, Greek hopes; DAX up 1.84%
Published Jan 26, 2012 12:29PM ET
After the close of European trade, the EURO STOXX 50 advanced 1.62%, France's CAC 40 gained 1.53%, while Germany's DAX surged 1.84%. Meanwhile, in the U.K. the FTSE 100 climbed 1.26%.
Sending the market sharply higher, Fed Chief Ben Bernanke stated yesterday, “We are prepared to provide further monetary accommodation if employment is not making sufficient progress toward our assessment of its maximum level, or if inflation shows signs of moving further below its mandate consistent rate. Bond buying is an option that’s certainly on the table.”
In addition to the Fed’s vow to keep interest rates low until at least late 2014.
Additional bullish impetus from the U.S. was a three percent rise in durable goods orders.
News that the cost of insuring against default in European corporate debt dropped to the lowest in nearly five months adding to the stock positive sentiment.
Meanwhile in Greece, unsubstantiated reports that private creditors will submit a new offer with an average interest rate of 3.75% on bonds as part of a debt restructuring; helped fuel the stock surge.
Mining companies and steel makers climbed with BHP Billiton climbing 3.8%, Anglo American added 3.4% and ThyssenKrupp gained 4.5%.
Cell phone maker, Nokia advanced 1.1% after selling more handsets last quarter than expected despite a 21% decline in sales.
Belgian lender, KBC Groep surged 9.4% after word that its close to selling its Polish banking unit.
EasyJet, Europe’s second largest discount airline, climbed 9% after first quarter revenue rocketed 17%.
In bearish news, Logitech plunged 12% after cutting sales and revenue forecasts.
U.S. stocks traded mixed mid session with the Dow30 higher by 0.21%, the S&P500 off by 0.10% and the Nasdaq down 0.20%.
On Friday, investors are awaiting the European Central Bank’s money supply report and the Bank of Japan’s policy meeting minutes. In the U.S. preliminary GDP and consumer sentiment is expected.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.