A pedestrian checks the Tokyo stock index displayed at a securities company branch office in Tokyo yesterday. Japan’s benchmark Nikkei 225 Stock Average jumped nearly 3 percent for the first rise in four trading days closing at 13,213.55 as concerns about China’s credit crunch eased and investors picked up cheaper shares after recent losses.
LONDON: European stock markets rose for a third day running yesterday, as traders digested news of an unexpected drop in German unemployment and solid data from the US.
London’s FTSE 100 index of leading shares rose 1.26 percent to 6,243.4 points. Frankfurt’s DAX 30 rose 0.63 percent to end trading at 7,990.75 points and in Paris the CAC 40 rose 0.97 percent to close at 3,762.19 points.
Madrid’s main index edged up 0.27 percent and Milan gained 0.44 percent. European equities had rallied on Wednesday for a second day in the wake of positive US economic data.
German unemployment registered a surprising fall in June when the labour market in Europe’s biggest economy proved robust, official data showed while many EU countries battle lengthening jobless queues.
The unemployment rate stood at 6.8 percent this month in seasonally-adjusted terms, according to monthly figures compiled by the Federal Labour Office.
Meanwhile, Italy’s borrowing costs edged up at an auction of medium and long-term bonds yesterday, but rose less than expected, following an easing in investor fears over the Federal Reserve’s plans to wind down its stimulus programme.
In London, official data revealed that Britain’s economy expanded by 0.3 percent in the first quarter of 2013, and never experienced a double-dip recession as previously thought.
In foreign exchange trading, the euro rose to $1.3016 from $1.3012 late in New York on Wednesday.
The dollar firmed to 98.43 yen from 97.72 yen on Wednesday.
On the London Bullion Market, the price of gold dropped to $1,232.75 an ounce from $1,236.25. The precious metal had struck the lowest point for nearly three years on Wednesday, at $1.221.99 an ounce, before recovering.
In New York, shares also gained on solid US data and ebbing fears that the US federal reserve would put a swift end to its massive stimulus programme.
In midday trade, the Dow Jones Industrial Average was up 0.86 percent while the tech-heavy Nasdaq gained 0.90 percent.
In Europe, the Italian Treasury raised ¤2.5bn ($3.25bn) in bonds due to expire in 2018 at a rate of 3.47 percent, compared to 3.01 percent at the end of May.
It also raised ¤2.5bn in 10-year paper set to mature in 2023 at a rate of 4.55 percent, compared to 4.14 percent. The rise in rates suggested increased investor concern over Italy’s political stability following the conviction on Monday of former premier Silvio Berlusconi for paying an underage prostitute for sex.
In company news, German tyre-maker Continental rallied 3.61 percent to ¤102.85 after the company announced ¤100m investment over the next few year at its biggest European plant in Slovakia.
In London, advertising giant WPP shot up 4.54 percent to 1,128 pence, boosted by positive comment from Bank of America analysts.
In Paris, auto group PSA Peugeot Citroen skyrocketed 5.47 percent to ¤6.50 on reports the Peugeot family was looking to cede the company to alliance partner General Motors. The report was denied by GM, while PSA and the Peugeots refused to comment. AFP
