Investing.com – European stocks traded mostly higher Wednesday after the Federal Reserve raised its domestic economic opinion and a Fitch upgrade of Greece ignited the risk on trade.
At the close of European trade, the EURO STOXX 50 gained 0.70%, France's CAC 40 added 0.40%, while Germany’s DAX advanced 1.19%. Meanwhile, in the U.K. the FTSE 100 traded down by 0.18%.
The FOMC stated late yesterday that global financial strains have lessened and the labor market has improved sparking the rally in worldwide equities.
The Federal Reserve added that 15 of the U.S. largest banks maintain enough reserves to weather a recession scenario further fuelling the bullish sentiment.
However, the FOMC softened its bullish stance by stating that the unemployment rate remains elevated and significant downside risks exist
Fitch Ratings increased Greece’s long term foreign and local currency issuer default ratings to B- with stable outlooks due to the 95% participation rate in the debt swap.
Meanwhile, in Italy, a bond auction sold EUR6 billion with borrowing costs on its three year debt falling to the lowest level since October, 2010 further adding to the bullish session.
In Chinese news, the country is easing restrictions on lending capacity at three of the nations four largest banks. This move was triggered after China’s exports, retail sales and industrial production declined in the first two months of 2012.
Banks led the rally higher with Credit Suisse adding 5%, Natixis climbing 5.2% and Deutsche Bank gaining 3.4% on the session.
Home Retail Group advanced 4.6% on a JP Morgan Chase upgrade to overweight.
In bearish news, Wacker Chemie, the solar grade silicon maker, gave back 3.8% after it stated it projects a lack of future demand for its products.
In U.S. midsession trade, stocks are higher with the Dow up 0.26%, the S&P 500 higher by 0.09% and the Nasdaq Composite adding 0.29%.
Investors are awaiting U.S. producer price inflation, long term securities transaction and New York manufacturing activity as well as ECB’s monthly bulletin on Thursday.
At the close of European trade, the EURO STOXX 50 gained 0.70%, France's CAC 40 added 0.40%, while Germany’s DAX advanced 1.19%. Meanwhile, in the U.K. the FTSE 100 traded down by 0.18%.
The FOMC stated late yesterday that global financial strains have lessened and the labor market has improved sparking the rally in worldwide equities.
The Federal Reserve added that 15 of the U.S. largest banks maintain enough reserves to weather a recession scenario further fuelling the bullish sentiment.
However, the FOMC softened its bullish stance by stating that the unemployment rate remains elevated and significant downside risks exist
Fitch Ratings increased Greece’s long term foreign and local currency issuer default ratings to B- with stable outlooks due to the 95% participation rate in the debt swap.
Meanwhile, in Italy, a bond auction sold EUR6 billion with borrowing costs on its three year debt falling to the lowest level since October, 2010 further adding to the bullish session.
In Chinese news, the country is easing restrictions on lending capacity at three of the nations four largest banks. This move was triggered after China’s exports, retail sales and industrial production declined in the first two months of 2012.
Banks led the rally higher with Credit Suisse adding 5%, Natixis climbing 5.2% and Deutsche Bank gaining 3.4% on the session.
Home Retail Group advanced 4.6% on a JP Morgan Chase upgrade to overweight.
In bearish news, Wacker Chemie, the solar grade silicon maker, gave back 3.8% after it stated it projects a lack of future demand for its products.
In U.S. midsession trade, stocks are higher with the Dow up 0.26%, the S&P 500 higher by 0.09% and the Nasdaq Composite adding 0.29%.
Investors are awaiting U.S. producer price inflation, long term securities transaction and New York manufacturing activity as well as ECB’s monthly bulletin on Thursday.