Wednesday June 10, 11:03 AM
European stocks forge higher
 |
LONDON (AFP) - Europe's leading stock markets rose Wednesday, after gains in Tokyo and a mixed showing in New York, with energy and mining companies boosted by strong commodity prices, dealers said.
In late morning trade, London's FTSE 100 index of leading shares was up 1.85 percent at 4,486.13 points.
In Paris, the CAC 40 (Paris: news) gained 1.67 percent to 3,351.65 points nearing the half-way mark, and in Frankfurt the DAX 30 (Xetra: news) won 2.11 percent to 5,103.12.
The DJ Euro Stoxx 50 index of leading eurozone shares advanced 1.76 percent to 2,512.12 points.
On the currency market the euro rose to 1.4137 dollars.
"The market is higher today, not due to a dramatic change of sentiment, but on high oil prices and strong metal prices," said analyst Nick Serff at financial spread-betting firm City Index.
"This brings into question whether the market will follow its recent range-bound trends -- and profit taking may take place soon.
"Crude oil prices have hit seven month highs and this is providing a further boost to oil stocks."
Wall Street stocks had spluttered to a mixed finish on Tuesday as fears about rising interest rates that could hamper an economic recovery offset upbeat news from the tech sector.
Japanese shares leapt 2.09 percent Wednesday on continued hopes for economic recovery while investors welcomed the news that car giant Chrysler (Xetra: 710000 - news) will be allowed to sell its assets to Fiat (Milan: F.MI - news) .
European equities were little changed in nervous trading on Tuesday, while in the United States investor concern grew over movement in the key government bond markets.
Markets remain worried Tuesday about rising bond yields that could put pressure on interest rates kept at virtually zero levels to help boost economic activity and jolt the economy from prolonged recession.
"The rise in yields has been dramatic," said analyst Kevin McConnell at Bloxham stockbrokers in Dublin.
"The US benchmark 10-year Treasury note yield hit a seven-month high of 3.91 percent at the start of this week, compared with the end of March when it was just 2.67 percent.
"Rising yields increase borrowing costs for both businesses and consumers, making prospects for a revival in profit growth that more challenging."
Investors also mulled the impact of news some major US banks would be able to repay the government for capital injections, in another sign the financial system was stabilizing.
The Dow Jones Industrial Average fell 0.02 percent to close at 8,763.06 points on Tuesday after a choppy session that saw swings in and out of positive territory.
The Nasdaq composite rose a solid 0.96 percent to 1,860.13 and the Standard & Poor's 500 index edged up 0.35 percent to 942.43 points.
The market gave a mixed response to a decision allowing 10 major US banks to repay the Treasury 68 billion dollars for capital injections made to stabilize the financial system.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
