LONDON: Encouraging German data helped to lift eurozone stock markets yesterday, while London dipped as a profit-warning by Petrofac sent the energy-services group’s shares plunging by a quarter.
Indices continued to win support after the European Central Bank on Friday signalled that it was ready to act quickly to deter deflation and after China cut interest rates for the first time in more than two years.
Frankfurt’s DAX 30 won 0.93 percent to 9,823.16 points and the CAC 40 in Paris gained 0.78 percent to stand at 4,380.25 in mid-afternoon trading.
London’s benchmark FTSE 100 index meanwhile was down a slight 0.01 percent at 6,750.08 points compared with Friday’s closing value.
Yesterday’s data out of Germany gave “reason to be more optimistic, as all three indicators — business climate, current assessment and expectations — rose on the month and easily exceeded expectations”, said Craig Erlam, market analyst at Alpari traders. Business confidence in Germany appears to be stabilising after recent declines, with the Ifo business climate index rising in November for the first time in seven months.
US stocks opened higher on the positive German business confidence data, adding to Friday’s records.AFP
