Investing.com - European stocks soared higher Monday as German business confidence surprisingly climbed and Fed Chief Ben Bernanke advised continued accommodative monetary policy remains needed.
Near the close of European trade, the EURO STOXX 50 traded higher by 0.57%, France's CAC 40 gained 0.74%, while Germany’s DAX surged 1.20%. Meanwhile, in the U.K. the FTSE 100 added 0.82%.
Sparking the rally, Germany’s Ifo institute reported its business climate index climbed to 109.8 from last month’s revised 109.7. Economists had expected it to remain unchanged at the initial February reading of 109.6.
In the United States, Fed Chairman Ben Bernanke stated that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
Capping the world wide rally, an industry report showed that pending home sales in the U.S. declined unexpectedly in February, indicated that the recovery in the housing market remains uneven.
The National Association of Realtors said its pending home sales index fell by 0.5% last month, missing expectations for a 1.0% gain. Pending home sales rose by 2.0% in January.
Meanwhile, German Chancellor Angela Merkel said earlier that Germany would be prepared to allow running the region’s two bailout funds in parallel, increasing the size of the bailout facility. This action would provide a total fund of EUR700 billion to combat the debt crisis in the single currency bloc.
However, holding back the rally, investors remained cautious after Italian Prime Minister Mario Monti warned that the threat of contagion from Spain could cause the debt crisis in the euro zone to flare up again.
Easy Jet soared 7.5% after stating its loss will be less than forecasted.
Lundin Petroleum jumped 7% upon a well appraisal confirming its find off the coast of Norway.
Spanish banks Banco Sabadell and Banco Bilboa Vizcaya Argentaria dropped 4% and 1.4% respectively on the Italian Prime Ministers warning.
U.S. shares are following higher in mid session trade with the Dow up 0.99%, the S&P 500 higher by 0.84% and the Nasdaq climbing 1.12% on the day.
Investors are awaiting German consumer climate, U.S. consumer confidence and a speech by Fed Chairman Ben Bernanke on Tuesday.
Near the close of European trade, the EURO STOXX 50 traded higher by 0.57%, France's CAC 40 gained 0.74%, while Germany’s DAX surged 1.20%. Meanwhile, in the U.K. the FTSE 100 added 0.82%.
Sparking the rally, Germany’s Ifo institute reported its business climate index climbed to 109.8 from last month’s revised 109.7. Economists had expected it to remain unchanged at the initial February reading of 109.6.
In the United States, Fed Chairman Ben Bernanke stated that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
Capping the world wide rally, an industry report showed that pending home sales in the U.S. declined unexpectedly in February, indicated that the recovery in the housing market remains uneven.
The National Association of Realtors said its pending home sales index fell by 0.5% last month, missing expectations for a 1.0% gain. Pending home sales rose by 2.0% in January.
Meanwhile, German Chancellor Angela Merkel said earlier that Germany would be prepared to allow running the region’s two bailout funds in parallel, increasing the size of the bailout facility. This action would provide a total fund of EUR700 billion to combat the debt crisis in the single currency bloc.
However, holding back the rally, investors remained cautious after Italian Prime Minister Mario Monti warned that the threat of contagion from Spain could cause the debt crisis in the euro zone to flare up again.
Easy Jet soared 7.5% after stating its loss will be less than forecasted.
Lundin Petroleum jumped 7% upon a well appraisal confirming its find off the coast of Norway.
Spanish banks Banco Sabadell and Banco Bilboa Vizcaya Argentaria dropped 4% and 1.4% respectively on the Italian Prime Ministers warning.
U.S. shares are following higher in mid session trade with the Dow up 0.99%, the S&P 500 higher by 0.84% and the Nasdaq climbing 1.12% on the day.
Investors are awaiting German consumer climate, U.S. consumer confidence and a speech by Fed Chairman Ben Bernanke on Tuesday.