Finance officials met in France on Monday in effort to keep Greece within the Eurozone, sending European stocks skyward.
European stocks soared on Monday, as EU finance ministers, scheduled to meet in Brussels on Tuesday, met in Paris to discuss measures for keeping Greece within the Eurozone (NYSEARCA:VGK). Finance officials from Germany, France, Spain and Italy discussed lowering interest rates on EU loans to Greece, as well as extending the maturities on Greek sovereign debt (NYSEARCA:GREK).
Investors were willing to overlook a good deal of bad news on Monday, allowing the major European Stock Indices to skyrocket. Istat reported that Italy’s industrial sales declined 4.2 percent in September from August. On a year-over-year basis, Italy’s industrial sales fell by 5.4 percent (NYSEARCA:EWI).
The Bank of Spain provided some bad news in the form of its latest report on troubled loans. Bad loans increased to 10.7 percent of the loans outstanding during September, compared with August’s 10.5 percent. The amount of overdue loans increased by €3.5 billion to €182.2 billion. The new total greatly exceeds the €100 billion credit line extended by the European Union (NYSEARCA:EWP). Spanish Magic: Weekly International ETF Report
Eurostat reported that seasonally adjusted production in the construction sector fell by 1.4 percent in the Eurozone (EA17) and by 1.8 percent in the broader, 27-nation European Union during September on a month-over-month basis.
As of 11:13 EST, the Euro STOXX 50 Index soared 2.56 percent to 2,489 – staying below its 50-day moving average of 2,513 (NYSEARCA:VGK). The FTSE 100 Index surged 2.24 percent to 5,735 (NYSEARCA:EWU). The German DAX Index jumped 2.59 percent to 7,125 (NYSEARCA:EWG). France’s CAC 40 Index skyrocketed 2.89 percent to 3,438 (NYSEARCA:EWQ). Spain’s IBEX 35 Index surged 2.23 percent to 7,757 (NYSEARCA:EWP). Italy’s FTSE MIB Index jumped 2.80 percent to 15,272 (NYSEARCA:EWI). World Markets Weekend Review
As of 11:22 EST, the euro advanced 0.52 percent against the dollar, trading at $1.2810 (NYSEARCA:FXE).
Spain’s ten-year bond yield rose to 5.89 percent on Monday from Friday’s closing level of 5.85 percent. Spain’s two-year bond yield jumped to 3.32 percent on Monday from Friday’s closing level of 3.25 percent (NYSEARCA:EWP).
Italy’s ten-year bond yield climbed to 4.93 percent on Monday from Friday’s closing level of 4.89 percent (NYSEARCA:EWI).