Outlook brightens in eurozone
By Pan Pylas |
August 3, 2010, Tuesday
|
Print Edition
Print Edition
EUROPEAN stock markets rose yesterday after another round of positive economic data, strong earnings from some of the region's biggest banks and expectations of a big rise on Wall Street at the opening.
The FTSE 100 index of leading British shares was up 99.62 points, or 1.9 percent, at 5,357.64 while Germany's DAX rose 98.50 points, or 1.6 percent, to 6,246.47. The CAC-40 in France was 72 points, or 2 percent higher at 3,715.14.
United States shares were also poised for a bright opening - Dow futures were up 103 points, or 1 percent, at 10,520 while the broader Standard & Poor's 500 futures rose 12 points, or 1.1 percent, at 1,110.30.
Sentiment was buoyed by further evidence that the European economic recovery is gathering pace.
The monthly manufacturing purchasing managers' index for the 16 countries that use the euro - a closely watched gauge of business activity - was revised up to 56.7 in July from the previous estimate if 56.5. Anything above 50 means the sector is expanding.
That is another indication that the eurozone economy is recovering far stronger than most investors had thought earlier this year, when the government debt crisis was threatening the single currency zone.
The focus later will be on an equivalent survey in the US, which kicks off an important week on the US economic front - Friday's non-farm payrolls data for July could well set the market tone for August, when trading activity usually drops off as investors take to the beach.
Last Friday's disappointing US second-quarter GDP figures had provided further evidence that the US economy was losing momentum - the 2.4 percent annualized growth rate is not considered enough to lower unemployment.
David Jones, chief market strategist at IG Index, said the expected rise on Wall Street is an indication that investors have shaken off some of last week's gloom and that the Dow Jones will aim to pass the 10,600 level.
The FTSE 100 index of leading British shares was up 99.62 points, or 1.9 percent, at 5,357.64 while Germany's DAX rose 98.50 points, or 1.6 percent, to 6,246.47. The CAC-40 in France was 72 points, or 2 percent higher at 3,715.14.
United States shares were also poised for a bright opening - Dow futures were up 103 points, or 1 percent, at 10,520 while the broader Standard & Poor's 500 futures rose 12 points, or 1.1 percent, at 1,110.30.
Sentiment was buoyed by further evidence that the European economic recovery is gathering pace.
The monthly manufacturing purchasing managers' index for the 16 countries that use the euro - a closely watched gauge of business activity - was revised up to 56.7 in July from the previous estimate if 56.5. Anything above 50 means the sector is expanding.
That is another indication that the eurozone economy is recovering far stronger than most investors had thought earlier this year, when the government debt crisis was threatening the single currency zone.
The focus later will be on an equivalent survey in the US, which kicks off an important week on the US economic front - Friday's non-farm payrolls data for July could well set the market tone for August, when trading activity usually drops off as investors take to the beach.
Last Friday's disappointing US second-quarter GDP figures had provided further evidence that the US economy was losing momentum - the 2.4 percent annualized growth rate is not considered enough to lower unemployment.
David Jones, chief market strategist at IG Index, said the expected rise on Wall Street is an indication that investors have shaken off some of last week's gloom and that the Dow Jones will aim to pass the 10,600 level.
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