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9/7/12

European shares set 13-month high on signs of economic improvment

European shares extended gains to hit a 13-month high on Friday, continuing to draw support from the European Central Bank’s bond buying plan unveiled in the previous session, and with investors also betting on an improvement in US jobs figures due later.

Sentiment further improved after German exports unexpectedly edged up in July and on news that China, the world’s top commodities consumer, approved 60 infrastructure projects this week in a bid to boost the economy.

Cyclical sectors, which generally derive strength from an improvement in economic activity, led the rally. Banks, miners and construction shares rose 1.7 to 2.1%. French bank Natixis rose 4.7%.
Euro zone banks, up 3%, have shot up 47% since ECB President Mario Draghi said in late July the bank was ready to take all the necessary measures to save the euro. Spain’s IBEX has surged 33%, while Italy’s FTSE MIB is up 29%.

Read more: European shares set 13-month high on signs of economic improvment - Money Matters - livemint.com

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