EUROPEAN MARKET LOOKING GOOD European shares rose on Wednesday, with Germanys blue chip index climbing for the 10th straight session as investors continued to bet on more monetary stimulus in the euro zone. Gains were capped by falls in energy shares, however, with Norwegian offshore driller Seadrill slumping after the company suspended its dividend. At 0852, the pan-European FTSEurofirst 300 index was up 0.3 percent a 1,392.80 points, ahead for the fourth straight day. Germanys Dax was up 0.6 percent, on track for its longest winning streak since may 2013. Euro zone bourses have been rising since European Central Bank President Mario Draghi opened the door to more aggressive asset purchases and China cut interest rates, boosting the allure of assets that depend on growth and offer higher yields than government bonds, such as stocks. The Dax has risen 8 percent since Nov 17 as reassuring German GDP and sentiment surveys confounded investor bets on the state of Europes largest economy, which had been hit by cross sanctions imposed by the European Union and Russia. The Dax has underperformed the U.S. S&P 500 index by 20 percent since the start of the year. Sentiment is bullish, Markus Huber, a senior trader at Peregrine & Black, said. Were long the DAX because America has outperformed hugely and even though growth there is strong, that is already in the price whereas in Germany theres more to come. Deutsche Bank rose 1.6 percent after Fitch affirmed its rating of A+, albeit with a negative outlook. German fashion retailer Zalandos shares jumped 10.4 percent to levels not seen since its debut last month after it said it was on track for its first full-year profit. Heavyweight energy companies lagged, however, after Brent crude hit a low of $78 ahead of OPEC talks. Seadrill fell 16 percent after it suspended dividend payments to reduce its debt. British holiday company Thomas Cook slumped 20 percent after it said chief executive Harriet Green was stepping down two years after leading a turnaround of the group.
Posted on: Wed, 26 Nov 2014 10:15:50 +0000
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