Europe Session Key Developments

* IBEX 35 Surges Over 4 Percent
* 18 of the 18 Western European Benchmark Indexes Close Higher

Investors Optimistic that ECB Will Contain Sovereign Debt
European markets closed higher as investors speculated that the ECB may step up measures to contain the regions sovereign debt crisis. The broad based rally was lead by European bank stocks as Portugal and Ireland led a decline in the cost of insuring against losses on government and corporate bonds in Europe. Contracts in Belgium, Italy, and Spain also fell from previous highs. Many investors feel that the market was due for a bounce after the consistent selloff amid concerns of European debt. The Euro rose against the dollar and the yen on speculation that policy makers will delay their exit from emergency, unconventional, liquidity measures at tomorrow’s meeting of the Governing Council in Frankfurt. Overall, all 18 western European benchmark indexes closed in the green on Wednesday.

FTSE 100 / 5,642.50 / +114.23 / +2.07%
UK stocks advance as Chinese manufacturing expanded for a fourth month, boosting raw material companies. China’s Purchasing Managers’ Index rose to 55.2, the fastest pace in seven months. The results was more than the 54.8 median economist forecast in a Bloomberg News survey. Rio Tinto Group gained 2l.6 percent while Xstrata Plc surged 4.1 percent as metal prices advanced. Sage Group Plc rose 5.4 percent as the software company announced profit that outpaced expectations. Royal Bank of Scotland Group Plc led bank shares higher after three days of losses.

CAC 40 / 3,669.29 / +58.85 / +1.63%
The CAC 40 closed over one and one half percent higher on Wednesday. Carrefour SA slumped 7.8 percent after the world’s second largest retailer cut its 2010 profit forecast and announced it will take charge at its Brazilian unit of 550 million Euros, more than triple its previous estimate. Barlays Plc, Evolution, Deutsche Bank AG and Banco Santander SA were among brokerages that advised investors to pare holdings in the ratiler after the results. Credit Agricole SA surged 3.8 percent after the company announced it is planning changes in senior management.

DAX / 6,866.63 / +178.14 / +2.66%
German stocks rose the most in three months as investors speculated that the debt crisis may force the ECB to expand their arsenal at their meeting tomorrow. Porsche SE advanced 6.2 percent after investors approved a 5 billion-Euro stock sale to reduce the company’s debt before its merger with Volkswagen AG. ThyssenKrupp AG and Salzgitter AG advanced with metal prices. BASF SE rose 3.1 percent, the highest price since 1992. The world’s largest chemical company won European Union approval to acquire food and cosmetics ingredients maker Cognis Holding GmbH after it agreed to sell Cognis’s hydroxyl monomers production business, eliminating antitrust concerns.

IBEX 35 / 9678.40 / +411.20 / +4.44%
The IBEX 35 soared nearly 4.5 percent at the end of the trading session on Wednesday. The index was led higher by the Financials sector, which experienced a 6.56 percent advance. Banco Bilbao Vizcaya Argentaria SA jumped 7.3 percent, leading gains among Spanish banks, after Deutsche Bank AG announced that investors’ mistrust of Spain is unjustified. Banco Santander SA soared 7.2 percent, the largest gain in six months. Faes Farma SA jumped 13 percent, the largest increase in 23 months. The company announced it won approval to sell its allergy treatment in Spain.

S&P/MIB / 20,251.21 / +468.54 / +2.37%
Italian equities surged over 2 percent after posting the largest monthly decline in November since February 09. Banca Monte dei paschi di Sieena SpA rose 3.3 percent. A gauge for European banks ended a three day decline as bond risk fell from record levels. Fiat SpA rose for the first day in four, gaining 4.6 percent ahead of the release of car sales figures in Italy. Fondiaria-Sai advanced over 6 percent as CA Cheuvreux reiterated an “outperform” rating on the stock.

Similar Posts:

Share