Investing.com - European stocks surged higher Tuesday as better than expected German investor confidence combined with a Fitch upgrade of Greece ignited the risk on trade.
At the close of European trade, the EURO STOXX 50 gained 1.66%, France's CAC 40 soared 1.72%, while Germany’s DAX advanced 1.37%. Meanwhile, in the U.K. the FTSE 100 traded up by 1.07%.
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.
Adding to the risk on nature of the session, the Commerce Department said that U.S. retail sales increased by a seasonally adjusted 1.1% last month, climbing the most in five months.
Core retail sales, which exclude automobile sales, rose by 0.9% in February, above expectations for a 0.8% gain.
The data decreased expectations for a third round of monetary stimulus by the Fed, after data on Friday showed that the U.S. economy added more jobs than forecast last month.
In the euro zone, the ZEW Centre for Economic Research, announced that its index of German economic sentiment advanced to the highest level since June 2010 in March, climbing to 22.3, against expectations for a reading of 10.5, adding to the bullish day.
In other news Tuesday, Spain agreed to demands from euro zone finance ministers that it cut its budget deficit target for this year to 5.3% of gross domestic product instead of its original 5.8% target.
Unicredit added 3.9% as Italy’s largest lender was raised to outperform at Exane BNP Paribis.
Tods SpA soared 7.2% after reporting a 20 % increase in 2011 earnings.
Salmon farmer Marine Harvest gained 3% on an upgrade from Nordea Bank to hold.
Inchcape climbed 11% as the car dealer and distributor beat full year profit estimates.
In U.S. midsession trade, stocks are mixed with the Dow up 0.84%, the S&P 500 higher by 0.96% and the Nasdaq Composite soaring 1.09%.
Investors are awaiting U.S. import prices and a speech by Fed Chief Ben Bernanke, as well as U.K.’s unemployment rate and the Swiss ZEW index report on economic health Tuesday.
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At the close of European trade, the EURO STOXX 50 gained 1.66%, France's CAC 40 soared 1.72%, while Germany’s DAX advanced 1.37%. Meanwhile, in the U.K. the FTSE 100 traded up by 1.07%.
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.
Adding to the risk on nature of the session, the Commerce Department said that U.S. retail sales increased by a seasonally adjusted 1.1% last month, climbing the most in five months.
Core retail sales, which exclude automobile sales, rose by 0.9% in February, above expectations for a 0.8% gain.
The data decreased expectations for a third round of monetary stimulus by the Fed, after data on Friday showed that the U.S. economy added more jobs than forecast last month.
In the euro zone, the ZEW Centre for Economic Research, announced that its index of German economic sentiment advanced to the highest level since June 2010 in March, climbing to 22.3, against expectations for a reading of 10.5, adding to the bullish day.
In other news Tuesday, Spain agreed to demands from euro zone finance ministers that it cut its budget deficit target for this year to 5.3% of gross domestic product instead of its original 5.8% target.
Unicredit added 3.9% as Italy’s largest lender was raised to outperform at Exane BNP Paribis.
Tods SpA soared 7.2% after reporting a 20 % increase in 2011 earnings.
Salmon farmer Marine Harvest gained 3% on an upgrade from Nordea Bank to hold.
Inchcape climbed 11% as the car dealer and distributor beat full year profit estimates.
In U.S. midsession trade, stocks are mixed with the Dow up 0.84%, the S&P 500 higher by 0.96% and the Nasdaq Composite soaring 1.09%.
Investors are awaiting U.S. import prices and a speech by Fed Chief Ben Bernanke, as well as U.K.’s unemployment rate and the Swiss ZEW index report on economic health Tuesday.
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