LONDON: European stocks and the euro rose yesterday, with Frankfurt and Paris hitting highs for the year in the wake of positive Chinese and eurozone manufacturing data, as EU finance ministers met for more talks on the debt crisis.
London’s benchmark FTSE 100 index edged up by 0.08 percent to close at 5,871.24 points, as Britain awaits a government budget update on Wednesday along with new growth forecasts. Frankfurt’s DAX 30 gained 0.40 percent to 7,435.21 points and the Paris CAC 40 added 0.26 percent to 3,566.59.
In intraday trading, Frankfurt hit its highest point since July 8, 2011, while Paris reached its highest level so far this year. The launch of a plan by Greece to buy back some of its huge debt at discounted prices also boosted market sentiment.
The European single currency nonetheless climbed to $1.3061 from $1.2986 late in New York on Friday. Gold prices dropped to $1,720 an ounce on the London Bullion Market, from $1,726 on Friday.
But markets eased back from session highs after disappointing US manufacturing data. In New York, markets were mixed after the Institute for Supply Management said its index on manufacturing activity for November fell into contraction territory, at 49.5, after two months of expansion, with businesses blaming the slow global economy and uncertainty from the fiscal cliff battle in Washington.
In midday trading, the Dow Jones Industrial Average was off by 0.09 percent, while the S&P 500 had gained 0.08 percent and the Nasdaq Composite added 0.23 percent.
Asian stock markets closed mixed earlier in the day after data showing Chinese manufacturing activity had picked up pace in November. The country’s official purchasing managers’ index (PMI) reached 50.6, up from 50.2 in October and 49.8 in September and the highest since hitting 53.3 in April. Anything above 50 indicates expansion. AFP
