Booting Berlusconi Boosts European Stocks

European stocks advanced on Thursday as investors gave thanks to the Italian Senate for giving Silvio Berlusconi the boot.
 
European stocks advanced on Thursday as investors expressed relief that the Senate of the boot-shaped nation gave the boot to Silvio Berlusconi. Expulsion of Berlusconi from the Italian Senate significantly reduced the chaos factor in a nation which has been struggling to escape from a recession which began in the second half of 2011. Italy’s third quarter GDP improved to only negative 0.1 percent from -0.3 percent in the second quarter and -0.6 percent in the first quarter of 2013.
 
The European Commission reported on Thursday that its Economic Sentiment Indicator (ESI) increased by 0.8 points in the Eurozone during the month of November to reach 98.5. In the greater, 28-nation European Union the ESI climbed 0.4 points to 102.1.
 
Thomas Cook Travel led the European stock market advance as its share price skyrocketed 14.75 percent after the company released a better-than-expected earnings report.
 
The Euro STOXX 50 Index finished Thursday’s session with a 0.32 percent advance to 3,092 – climbing further above its 50-day moving average of 3,005. Its Relative Strength Index is 62.60 (FEZ). The FTSE 100 Index rose 0.08 percent to 6,654 (EWU).
 
The German DAX Index climbed 0.39 percent to 9,387 (EWG). France’s CAC 40 Index rose 0.22 percent to 4,302 (EWQ). Spain’s IBEX 35 Index surged 0.52 percent to 9,859 (EWP). Italy’s FTSE MIB Index jumped 0.92 percent to 19,099 (EWI).
 
As of 4:35 EDT, the euro advanced 0.19 percent against the dollar, trading at $1.3604 (FXE).
 
Spain’s ten-year bond yield rose to 4.15 percent on Thursday from Wednesday‘s closing level of 4.14 percent (EWP). Spain’s two-year bond yield rose to 1.035 percent on Thursday from Wednesday‘s closing level of 1.012 percent (EWP).

Italy’s ten-year bond yield declined to 4.048 percent on Thursday from Wednesday‘s closing level of 4.065 percent (EWI).

On London’s ICE Futures Europe Exchange, January futures for Brent crude oil declined 36 cents (0.32 percent) to $110.95/bbl. (BNO).

February gold futures advanced $6.70 (0.54 percent) to $1,244.40 per ounce (GLD).

In China, coal and trains sent stocks soaring, as the Shanghai Composite Index reached its highest level since October 21. The nation’s State Council announced that one of its reforms would involve controlling the “disorderly” growth of coal output. Coal mining stocks jumped more than 1.5 percent on the news. Train manufacturer, China CNR saw its share price soar 1.60 percent after announcing that it is involved in negotiations to produce high-speed trains for Russia and Romania. The Shanghai Composite Index surged 0.83 percent 2,219 (FXI). Hong Kong’s Hang Seng Index dipped 0.07 percent to end the session at 23,789 (NYSEARCA:EWH).

In Japan, yen weakness continued to be the driving factor behind stock prices. The yen weakened to 102.23 per dollar during Thursday’s trading session in Tokyo. A weaker yen causes Japanese exports to be more competitively priced in foreign markets (FXY). The Nikkei 225 Stock Average skyrocketed 1.80 percent to 15,727 (EWJ).

American stock index futures trading proceeded on Thursday with an abbreviated Thanksgiving Day session. The Dow Jones Industrials future advanced 0.27 percent to 16,117. The S&P 500 future rose 0.24 percent to 1,808 (SPY). The Nasdaq 100 future climbed 0.43 percent to 3,483.

Bottom line:  The expulsion of Silvio Berlusconi from the Italian Senate had FTSE MIB investors partying like it’s 19-zero-99. Bunga-Bunga!

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