Euro stocks surge on U.S. jobs data; DAX up 1.46%
Published Feb 03, 2012 11:15AM ET
Near the close of European trade, the EURO STOXX 50 advanced 1.28%, France's CAC 40 gained 1.11%, while Germany's DAX surged 1.46%. Meanwhile, in the U.K. the FTSE 100 climbed 1.65%.
The stock rally was triggered as non farm payrolls in the U.S. beat forecast adding 243,000 according to official data, and the unemployment rate dropped to 8.3%.
This improvement cause’s doubt that the Federal Reserve will be able to stick to its vow not to raise interest rates until late 2014.
The surprising rise in employment was broad based, involving multiple economic sectors.
Yesterday, Federal Reserve Chairman, Ben Bernanke stated at his testimony that the economy is showing signs of improvement. In addition to requesting lawmakers to reduce the long term U.S. budget deficit.
Earlier, in the European Union, Economic and Monetary Affairs Commissioner Olli Rehn stated that Greek debt negotiations were at an advanced staged with a conclusion pending.
The deal is supposed to be approved at an extraordinary meeting of EU finance ministers on Monday.
This agreement is critical for Greece to avoid default on March 20 by obtaining its next tranche of bailout funds.
However, Eurogroup head, Jean Claude Juncker stated talks with private creditors on the Greek debt restructuring plan have proven to be “ultra difficult”.
Meanwhile, finance ministers from Germany, Finland, Luxembourg and the Netherlands, the four euro zone countries with AAA ratings from all three major rating agencies, will meet in Berlin today. There will be a news blackout on the meeting with no press conference or briefs expected.
Temenos Group soared 13% after Misys Plc stated it had been in talks related to a merger with the Swiss company.
Carmakers climbed with Daimler adding 2.5%, and Volvo climbing 4.4% during the session.
NKT Holdings added 7.7% and Subsea 7 climbed 2.5% after the pipeline companies agreed to sell their holdings to National Oilwell Varco for USD673 million.
Investors are awaiting the Australian interest rate decision and German factory orders on Monday.
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Written By: Investing.com
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