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US, European stocks rise

18 February 2010 08:15 (UTC +04:00)

Baku. Vahab Rzayev - APA-Economics. European stocks climbed Wednesday and the euro held most of Tuesday’s gains as Greek fears subsided and positive earnings news from the financial sector helped to sustain positive sentiment in equities.

By 0855 GMT, the pan-European Stoxx 600 index had increased by 1.0% to 246.9. London’s FTSE 100 was 0.6% higher at 5274.8, Frankfurt’s DAX gained 1.0% to 5647.7 and Paris’s CAC-40 was up 1.4% at 3720.7.

Meanwhile, Legal & General gained 1.6% to 76.0 pence in London after it reported a modest U.K. recovery in its interim management statement but its investment management unit looked robust. Financials and banks led Europe higher, with the Stoxx Europe 600 financial services sub-sector up 1.7%.

On Tuesday, U.S. stocks climbed as worries about the European debt crisis eased and a report showed improvements in New York-area manufacturing.

The Dow Jones Industrial Average climbed 1.7% to 10,268.8, marking its biggest one-day gain since November 9. The Standard & Poor’s 500 index rose 1.8% to 1094.9, its largest one-day rise since November 9. All its sectors rose, with energy, materials and financials in the lead. The Nasdaq Composite climbed 1.4% to 2214.2, representing its best day since January 19.

In the foreign exchanges, the euro was marginally weaker after rebounding sharply against the dollar Tuesday, as a broad rise in risk appetite and short covering aided the single currency.

At 0925 GMT, the euro was trading at $1.3757, down from $1.3771 late Tuesday in New York. The dollar was trading at Y90.43, up from Y90.14.

But a note by Royal Bank of Scotland said a sustained bounce was unlikely, given ongoing uncertainties regarding European sovereign debt, and while the U.S. economic recovery continues at a decent pace.

Elsewhere, spot gold was taking a breather after Tuesday’s sharp rally. It was quoted at $1120.90 per troy ounce, up $1.45 from its New York close. March Nymex crude oil futures were quoted at $77.53 per barrel, up 52 cents from the New York close. March bund futures were up 0.09 at 123.47.