• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

Loading...
See More

Euro shares buoyed by debt support

Jul 02 2012 13:36 SAPA

Related Articles

Shares cheer eurozone bank relief

Stocks, euro surge on EU bond support

Absa stocks take a hammering

Shares edge up but gains limited

Volatile JSE closes weaker

No let-up for Absa as shares tumble

 

Frankfurt - European share markets began the trading week on an upbeat note on Monday as the momentum from the breakthrough in the euro debt crisis at last week's EU summit continued to underpin investor confidence.

While the eurozone's blue-chip Stoxx 50 index rose 1.34% to 2,295.03 points in morning trading, the euro slipped 0.14% to $1.2555 and borrowing costs for Spain edged up.

The yield on Spanish 10-year bonds climbed to 6.34% from 6.33%. At the same time, the risk premium measuring the difference with German bonds rose by five basis points to 480 basis points.

Analysts were cautious about Friday's strong gains in the euro as representing a change in direction for the common currency, which has recently come under pressure amid mounting concerns about the eurozone's outlook.

"We can still not speak a change in the trend," wrote the foreign exchange analysts from Germany's Helaba bank in a note to clients.

Monday's increase in European stocks also followed the release of better-than-expected manufacturing indicators from Asia's two biggest economies - Japan and China.

However, Asian investors appeared to take the indicators in their stride with stocks markets in Japan and China ending the day barely changed.

Monday's share market performance came after a good week for global shares with the Stoxx 50 index up 7.7% on the week after European leaders agreed to a series of short-term measures to address the eurozone debt crisis.

The pickup in European shares also came ahead of this week's meeting of the European Central Bank with analysts expecting the Frankfrurt-based bank to announce a rate cut to help spur growth in the eurozone.

 

european markets  |  europe debt crisis  |  pmi

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

10 most expensive cars In the world

This is car porn at its best!

 
 

Luxury living

5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!
What to expect inside a royal nursery

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...