Investing.com - European stock markets closed higher Thursday, as bullish confidence strengthened by Bernanke’s action suggestion, solid employment numbers and positive Spanish news
During European afternoon trade, the EURO STOXX 50 climbed 0.25%, France’s CAC 40 rallied 0.42%, while Germany’s DAX 30 added 0.82%.
The U.S. Department of Labor said the number of people who filed for unemployment assistance last week fell by 12,000 to a seasonally adjusted 377,000, in line with expectations.
The previous week’s figure was revised up to 389,000 from a previously reported 383,000.
In testimony to a congressional committee in Washington, Bernanke stated that the Fed remained "prepared to take action" to protect the U.S. economy and financial system if stresses on the financial system escalate, but stopped short of indicating what these actions might be.
Sparking the equity rally, the People's Bank of China reported it will lower benchmark interest rates, in a bid to bolster growth in the world’s second largest economy and counter the effects of a slowdown in global growth.
In other news, solid demand at an auction of Spanish government debt and fresh hopes that European leaders are stepping up efforts to tackle Spain's banking crisis also bolstered investor sentiment on the single currency.
Spain’s Treasury successfully sold EUR2.07 billion of bonds, slightly more than the targeted amount, in an auction which met with solid investor demand, but saw borrowing costs rise.
Spanish lenders remained sharply higher, as shares in BBVA and Banco Santander surged 3.02% and 2.91% respectively. They were closely followed by France’s BNP Paribas and Societe Generale, climbing 1.64% and 1.58%, while German lenders Deutsche Bank and Commerzbank rallied 1.16% and 2.58%.
Meanwhile, Telefonica, Spain’s biggest phone company, added 0.33% after announcing a joint venture with Vodafone to pool the basic infrastructure for their U.K. mobile-phone networks. The companies said the agreement will allow them to deliver nationwide 4G services faster than they would have done independently.
France-based Vivendi also gained 1.64% on reports Chairman Vincent Bollore wants to raise his stake in the French media company to between 4 and 5%. Bollore already has a 1.1% stake in Vivendi, according to data compiled by Bloomberg.
In London, FTSE 100 surged 1.18%, supported by strong gains in financial stocks, while the Bank of England left interest rates unchanged at 0.50% and maintained its quantitative easing program at GBP325 billion.
Shares in the Royal Bank of Scotland soared 3.91% and Lloyds Banking rallied 3.12%, while Barclays and HSBC Holdings advanced 2.74% and 1.27% respectively.
Elsewhere, mining giants and Rio Tinto and Bhp Billiton pushed sharply higher, jumping 3.60% and 2.69%, while copper producers Xstrata and Kazakhmys gained 2.53% and 2.87% respectively.
In the U.S., equity markets followed higher with the Dow Jones Industrial Average up 0.75%, S&P 500 futures ahead by 0.57%, while tech heavy Nasdaq pushed 0.26% higher.
Investors are awaiting the Chinese CPI and the U.S. and Canadian trade balance on Friday.
During European afternoon trade, the EURO STOXX 50 climbed 0.25%, France’s CAC 40 rallied 0.42%, while Germany’s DAX 30 added 0.82%.
The U.S. Department of Labor said the number of people who filed for unemployment assistance last week fell by 12,000 to a seasonally adjusted 377,000, in line with expectations.
The previous week’s figure was revised up to 389,000 from a previously reported 383,000.
In testimony to a congressional committee in Washington, Bernanke stated that the Fed remained "prepared to take action" to protect the U.S. economy and financial system if stresses on the financial system escalate, but stopped short of indicating what these actions might be.
Sparking the equity rally, the People's Bank of China reported it will lower benchmark interest rates, in a bid to bolster growth in the world’s second largest economy and counter the effects of a slowdown in global growth.
In other news, solid demand at an auction of Spanish government debt and fresh hopes that European leaders are stepping up efforts to tackle Spain's banking crisis also bolstered investor sentiment on the single currency.
Spain’s Treasury successfully sold EUR2.07 billion of bonds, slightly more than the targeted amount, in an auction which met with solid investor demand, but saw borrowing costs rise.
Spanish lenders remained sharply higher, as shares in BBVA and Banco Santander surged 3.02% and 2.91% respectively. They were closely followed by France’s BNP Paribas and Societe Generale, climbing 1.64% and 1.58%, while German lenders Deutsche Bank and Commerzbank rallied 1.16% and 2.58%.
Meanwhile, Telefonica, Spain’s biggest phone company, added 0.33% after announcing a joint venture with Vodafone to pool the basic infrastructure for their U.K. mobile-phone networks. The companies said the agreement will allow them to deliver nationwide 4G services faster than they would have done independently.
France-based Vivendi also gained 1.64% on reports Chairman Vincent Bollore wants to raise his stake in the French media company to between 4 and 5%. Bollore already has a 1.1% stake in Vivendi, according to data compiled by Bloomberg.
In London, FTSE 100 surged 1.18%, supported by strong gains in financial stocks, while the Bank of England left interest rates unchanged at 0.50% and maintained its quantitative easing program at GBP325 billion.
Shares in the Royal Bank of Scotland soared 3.91% and Lloyds Banking rallied 3.12%, while Barclays and HSBC Holdings advanced 2.74% and 1.27% respectively.
Elsewhere, mining giants and Rio Tinto and Bhp Billiton pushed sharply higher, jumping 3.60% and 2.69%, while copper producers Xstrata and Kazakhmys gained 2.53% and 2.87% respectively.
In the U.S., equity markets followed higher with the Dow Jones Industrial Average up 0.75%, S&P 500 futures ahead by 0.57%, while tech heavy Nasdaq pushed 0.26% higher.
Investors are awaiting the Chinese CPI and the U.S. and Canadian trade balance on Friday.