Euro stocks surge on lowered credit costs, China; DAX jumps 1.17%
Published Mar 01, 2012 12:20PM ET
Near the close of European trade, the EURO STOXX 50 surged 1.38%, France's CAC 40 advanced 1.32%, while Germany’s DAX jumped 1.17%. Meanwhile, in the U.K. the FTSE 100 climbed 0.94%.
Spain and France sold EUR12.5 billion of bonds, triggered by the European Central Banks liquidity injection on Wednesday. Yields moved below 2%, igniting the equity rally.
Italy also participated in the bullish move with two year note rates dipping below 2% for the first time since October, 2010.
China’s manufacturing continues its upswing, improving for the third straight month as the PMI climbed to 51.0 from 50.5 in January.
In Greek news, Euro area finance minister are meeting in Brussels to discuss the second bailout program for the island nation.
This meeting will likely precede a summit of 27 EU leaders to finalize the EUR130 billion aid package.
Greece has agreed to a EUR3.2 billion of extra austerity measures and negotiated the terms for the largest national debt restructuring in history.
Adecco, the temporary worker provider, climbed 7% after beating fourth quarter net income forecasts.
Veolia Environnement added 9.2% upon announcing it’s in talks to sell its mass transit unit.
Cable & Wireless rocketed 16%, leading the Stoxx 600 higher, as Tata communication said it may make a cash offer for the company by as early as the end of the month.
In bearish news, PSA Peugeot Citroen gave back 6.4% after Moody’s cut the automakers credit rating to junk.
U.S. Stocks are following Europe higher midsession with the Dow gaining 0.31%, the S&P 500 advancing 0.40% and the Nasdaq marching higher by 0.54%
Investors are awaiting German retail sales and Canadian GDP, as well as the possible outcome of the second day of EU leader’s Brussels meeting.
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Written By: Investing.com
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