Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Euro shares surge on bond buying, strong U.S. employment;DAX up 1.24%

Stock MarketsOct 05, 2012 11:42AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Investing.com - European stocks soared sharply higher into the close Friday, as market sentiment strengthened after European Central Bank President Mario Draghi reiterated that the bank was ready to start purchasing troubled bonds.

At the close of European trade, the EURO STOXX 50 climbed 1.74%, France’s CAC 40 advanced 1.56%, while Germany’s DAX 30 added 1.24%. 

Speaking at the ECB's post-policy meeting press conference, Draghi said the central bank was ready to undertake Outright Monetary Transactions when the prerequisites are in place and reiterated that the ECB was acting strictly within its mandate in undertaking a bond buying program via OMTs.

The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision. 

Earlier in the day, euro zone officials announced that if a request from the Spanish government for a sovereign bailout were to come it would not be imminent.
Sparking the rally, the rate of unemployment in the U.S. last month fell unexpectedly, official data showed on Friday.

In a report, the U.S. Department of Labor said the unemployment rate fell to a seasonally adjusted 7.8%, from 8.1% in the preceding month .

Analysts had expected the U.S. unemployment rate to rise to 8.2% last month. 

In addition, U.S. non-farm payrolls rose more-than-expected last month, official data showed on Friday.

In a report, the U.S. Department of Labor said non-farm payrolls rose to a seasonally adjusted 114K, from 142K in the preceding month whose figure was revised up from 96K.

Analysts had expected U.S. non-farm payrolls to rise 113K last month.

Financial stocks were broadly higher, led by French lenders BNP Paribas and Societe Generale, up 1.45% and 1.35%, while Germany's Deutsche Bank and Commerzbank advanced 0.11% and 0.56% respectively. 

Peripheral lenders added to gains, with shares in Spain's BBVA and Banco Santander climbing 0.60% and 1.07%, while Italian banks Intesa Sanpaolo and Unicredit rose 0.24% and 0.59%. 

Automakers were also on the upside, as German constructors BMW and Volkswagen jumped 1.10% and 1.24%, while Italian group Fiat climbed 0.51%. 

In London, commodity-heavy FTSE 100 added 0.73%, supported by gains in mining and oil stocks. 

Mining giants Rio Tinto and BHP Billiton advanced 1.68% and 0.47%, while copper producer Kazakhmys rallied 2.19%. 

Oil and gas giant Anglo American was also higher, with shares jumping 1.47%, while rival BP added 0.71%. 

Elsewhere, financial stocks were mixed. Shares in HSBC Holdings rose 0.42% and Barclays climbed 0.62%, while the Royal Bank of Scotland and Lloys Banking retreated 0.13% and 0.87% respectively. 

At the open, the Dow Jones added 0.50%, the broad based S&P 500 advanced 0.72% and the tech heavy Nasdaq climbed 0.44%.



 
Euro shares surge on bond buying, strong U.S. employment;DAX up 1.24%
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email