Euro stocks surge on China's numbers, German confidence; DAX up 1.82%
Published Jan 17, 2012 12:33PM ET
After the close of European trade, the EURO STOXX gained 1.49%, France's CAC 40 climbed 1.40%, while Germany's DAX closed up 1.82%. Meanwhile, in the U.K. the FTSE 100 added 0.65%.
Gross Domestic Product in China increased 8.9% in the fourth quarter year over year. While the economy expanded at the slowest pace in 10 quarters raising speculation that Premiere Wen Jiabao will ease monetary policy.
The German ZEW investor confidence index surged the most on record. The numbers jumped from minus 21.6 to minus 53.8 in December, the largest gain since the index began in December, 1991, helping to fuel the bullish stock advance.
Yesterday, Standard & Poor's downgraded the European Financial Stability Facility to AA+ from AAA adding to the euro zone's debt fears
However, Witold Bahrke of PFA Pension A/S explained to Bloomberg, "Rating downgrades are always a bit of old news and everybody already anticipated the move from S&P, but a positive is that President Sarkozy will have less leverage against Chancellor Merkel who's getting more room to push her agenda. We have seen a series of indicators showing macro economic conditions have improved."
Greek officials will reconvene with creditors on January 18th after the talks stalled last week increasing default fears.
Carmakers led gains with Daimler adding 3.7% and Renault advancing 2.4%
Miner, Rio Tinto climbed 2.8% after stating that 4th quarter iron ore production climbed to 51.2 million metric tons from 50.1 million metric tons year over year.
In bearish news, Essar Energy plummeted 26% on an India Supreme Court decision regarding sales tax deferment.
U.S. stocks were higher mid session with the Dow30 up .90%, the S&P500 climbing 0.87% and the Nasdaq advancing 1.09%.
Investors are awaiting U.S. producer price inflation and crude oil inventories on Wednesday.
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Written By: Investing.com
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