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European stocks higher on Greek debt deal; DAX jumps 1.06%

Published 03/09/2012, 11:23 AM
Updated 03/09/2012, 11:28 AM
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Investing.com -  European stocks traded higher Friday, as private investors agreed to the Greek debt deal and strong U.S. payroll numbers added to worldwide bullish equity sentiment.
 
Near the close of European trade, the EURO STOXX 50 added 0.56%, France's CAC 40 climbed 0.71%, while Germany’s DAX advanced 1.06%.  Meanwhile, in the U.K. the FTSE 100 traded up by 0.61%.
 
Lifting shares, Greece’s government said that bondholders tendered 152 billion euros of Greek-law bonds, or 85.8 percent, for the debt swap.
 
The struggling island nation will swap their holdings for new securities under the debt exchange.
 
Creditors also tendered 20 billion euros of foreign-law bonds, according to the country’s Finance Ministry.
 
However, Greece’s use of collective-action clauses forcing investors to take part in the sovereign restructuring should trigger $3 billion of insurance payouts under rules governing credit- default swap contracts.
 
Further increasing the bullish equity sentiment were better than expected U.S. non farm payroll figures.
 
The 227,000 increase in payrolls followed a revised 284,000 gain in January that was bigger than first estimated, Labor Department figures indicated.
 
The median projection of economists in a Bloomberg News survey called for a 210,000 rise in February employment. The jobless rate held at 8.3 percent.
 
The London Stock Exchange rallied 7.4% after agreeing to buy a majority stake in LCH Clearnet to expand its clearing operations.
 
Cable & Wireless soared 4.9% as rumors that Vodafone may push back the deadline to bid for the wireless company hit the wire.
 
Lagadere plummeted 7% as the radio station owner posted net income below last year’s.
 
In U.S. midsession trade, stocks are higher with the Dow up 0.42%, the S&P 500 ahead by 0.56% and the Nasdaq Composite adding 0.68%.


 

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