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European stocks hold gains after Italian auction, U.S. data; DAX up 0.41%

Published 12/29/2011, 08:53 AM
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Investing.com - European stock markets remained moderately higher on Thursday, despite a disappointing Italian long-term bond auction and downbeat U.S. jobless claims data.

During European afternoon trade, the EURO STOXX 50 rose 0.15%, France’s CAC 40 advanced 0.12%, while Germany’s DAX 30 added 0.41%.

With most investors already away on year-end leave, trading volumes were thin, resulting in tight liquidity conditions and irregular volatility.

Italy’s Treasury sold just over EUR7 billion of long-term debt maturing between 2014 and 2022, below the maximum target of EUR8.5 billion.

Following the auction, the yield on Italy’s 10-year bonds traded at 7.1%, above the critical 7% threshold widely seen as unsustainable in the long-term.

Meanwhile, data showed that the number of people who filed for unemployment assistance in the U.S. last week rose more-than-expected to 381,000.

Financial stocks turned broadly lower as shares in Germany’s Deutsche Bank fell 0.19%, while French lenders BNP Paribas and Societe Generale tumbled 1.48% and 1.82%, extending earlier losses.

Peripheral lenders also contributed to losses with Italy’s Unicredit and Intesa Sanpaolo declining 2% and 0.24% respectively, while Spanish groups BBVA and Banco Santander slumped 1.02% and 0.18%.

On the upside, chemical companies were among the day’s top gainers with Bayer surging 1.71% and BASF adding 0.74%.

In London, commodity-heavy FTSE 100 rose 0.18%, supported by gains in energy and mining stocks.

Anglo American advanced 0.42% and British Petroleum added 0.18%, while mining giant Bhp Billiton climbed 0.91%.

Meanwhile, copper producers Xstrata and Kazakhmys declined 0.12% and 0.33% respectively.

Financial stocks remained mixed as shares in the Royal Bank of Scotland jumped 1.56% and Lloyds Banking climbed 0.82%, while Barclays and HSBC Holdings slid 0.52% and 0.11%.

In the U.S., equity markets pointed to a moderately higher open. The Dow Jones Industrial Average futures pointed to a rise of 0.23%, S&P 500 futures signaled a 0.30% increase, while the Nasdaq 100 futures indicated a 0.32% gain.

Later in the day, the U.S. was to release industry data on pending home sales and business conditions in the Chicago area, as well as an official report on crude oil stockpiles.



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