News Column

European Stocks Rise For Eighth Week On ECB, US Jobs Report

June 6, 2014

LONDON (Alliance News) - European stocks rallied for a second straight session Friday as investors cheered unprecedented easing measures from the European Central Bank along with an upbeat US jobs report.

Banks were in the spotlight after the ECB cut its interest rates on Thursday.

ECB President Mario Draghi said the bank is not over with action in its battle against sticky low inflation and stands ready to take non-standard measures including asset purchases.

The Euro Stoxx 50 index of eurozone bluechip stocks rose 0.76%, for a weekly gain of 1.46%. The index has risen 8 straight weeks.

The German DAX rose 0.34%, the CAC 40 of France added 0.65%, and the UK'sFTSE 100 climbed higher by 0.57%. Swiss shares again lagged with the SMI Index up 0.15%.

Commerzbank AG was by far the top gainer among major German banks. Shares climbed 4.2% after its CEO predicted that the ECB would find no problems during an audit.

Air Berlin, which reported traffic data for May, rose 2%.

Fuller Smith & Turner reported increased full year profit. The stock rose 1.3%.

Specialist engineering support services firm Redhall plunged 27%. The company announced the departure of its chief executive.

Centrica PLC climbed 1.5% to after the Times reported Qatar, Electricite de France SA or a private-equity group may make a takeover bid.

In economic news, German exports increased notably in April, following declines in the previous two months, figures from Destatis showed. Total exports climbed a calender-and-seasonally adjusted 3.0% monthly in April, following a 1.8% decline in March.

Meanwhile, the French trade deficit narrowed unexpectedly in April due to a notable decline in imports, the customs office said.

Separate data released by the Office for National Statistics showed that the UK visible trade deficit widened in April reflecting a decline in exports amid rising imports.

In economic news from the US, data released by the Labor Department showed non-farm payroll employment to have increased by 217,000 jobs in May, after jumping 282,000 jobs in April.

Economists had been expecting employment to rise by about 215,000 jobs in the month.

The data showed unemployment rate was steady at 6.3% in May. Economists expected unemployment rate to edge up to 6.4%.

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Source: Alliance News

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