subject: European Markets FTSE,CAC,DAX were ended on a higher note [print this page] European Markets FTSE,CAC,DAX were ended on a higher note
The European equities like the FTSE , CAC and DAX ended up on a bright note on reports that the European Central Bank had bought euro zone bonds and as data showed and unexpected surge in US home sales in October. Equities also got a
boost from US data showing jobless benefits touched a fresh two-year low last week.Shares in automobile and auto parts featured among the top gainers when data showed US auto sales rose a stronger than expected. Banks were also in demand.Graham Bishop, equity strategist at RBS. said: "We are pretty bullish on the market for the next 12 months,partly on the earnings surprise story ... I think that the fears surrounding peripheral debt issues will abate as we go
through the course of the next year."
The Wall Street saw a bright day for second consecutive day as concerns about Europe's sovereign debt crisis waned,forcing investors to reverse bearish bets on the market.Bank stocks led the way. Retailers' shares rose on the stronger-than-expected November sales data, which reflects a healthy start to the holiday shopping season.Michael James, a senior trader at regional investment bank Wedbush Morgan in Los Angeles said: "Several times this year, we've had sovereign debt fears crop up. As more traders get increasingly convinced this is going to be the time it really matters, and short positions build up more, you have further explosive moves higher as those shorts are forced to cover."
The Japanese market especially the Nikkei to settled higher, encouraged by strong US economic data, a softer yen and hopes of steps in Europe to ease the sovereign debt crisis. Acording to ADP data, US private-sector payrolls achieved
their biggest gain in three years, a while global manufacturing picked up speed, boosted by China and Germany.Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities said: "Foreign funds came back today and are the driving force behind this jump, as expectations for the US economy to pick up speed are high after yesterday's data."
The euro was seen higher for second consecutive day on market talk the European Central Bank was buying bonds, but lingering concerns about the outlook for peripheral euro zone countries should continue to put pressure on the currency. A stronger-than-expected gain in payrolls should bode well for the dollar.Bob Sinche, global head of currency strategy at RBS in Stamford, Connecticut said: "Euro/dollar was overdone to the topside on quantitative easing part 2 and went overdone on the downside on fears of an imminent euro zone crisis. I think we have come back to the euro's fundamental valuation, which in our view, is actually $1.32-$1.33."
Oil prices ended up higher as a weaker dollar prompted investors to buy riskier assets such as oil and other commodities. Oil investors took the cue from Wall Street, which show-cased positive data on housing and retail sales,indicating the economic recovery was getting traction and boding well for future oil demand.Jim Ritterbusch, president of independent consultants Ritterbusch & Associates in Galena, Illinois said: "The improved U.S. economic climate that has spurred this week's upside acceleration in equities is an important driver of higher oil values and we look for this pattern to be continued with tomorrow's release of the nonfarm payrolls number."
Gold prices rose on a good note as a safe-haven buying faded after European lenders offered a liquidity safety net for vulnerable banks and as US data showed signs of an improving economy.George Gero, precious metals strategist at RBC
Capital Markets said; "In gold, you are seeing some traders who are reallocating to other markets due to strength in stocks after indications of improving economy."
