ZEW Institute’s Indicator of German Economic Sentiment took a big jump in December, giving a huge boost to European stocks.
A surge in German economic sentiment sent the major European stock indices soaring on Tuesday. Germany’s ZEW Institute reported that its Indicator of Economic Sentiment for Germany increased 22.6 points in December to positive 6.9 from November’s reading of negative 15.7 (NYSEARCA;EWG). The euro made a big advance on the news.
Spain’s treasury announced that its new regional liquidity mechanism will provide loans to the nation’s regional governments which cannot sell debt on their own. Of the 17 regions which comprise Spain, nine are expected to borrow as much as €18 billion from the facility before the end of this year. The bailout facility is expected to provide as much as €23 billion in loans during 2013 (NYSEARCA:EWP).
As of 11:15 EST, the Euro STOXX 50 Index jumped 1.02 percent to 2,622 – staying above its 50-day moving average of 2,519 (NYSEARCA:VGK). The FTSE 100 Index advanced 0.07 percent to 5,926 (NYSEARCA:EWU). The German DAX Index advanced 0.69 percent to 7,583 (NYSEARCA:EWG). France’s CAC 40 Index climbed 0.84 percent to 3,642 (NYSEARCA:EWQ). Spain’s IBEX 35 Index surged 1.37 percent to 7,911 (NYSEARCA:EWP). Italy’s FTSE MIB Index jumped 1.35 percent to 15,561 (NYSEARCA:EWI). Best Latin America ETFs for 2013
As of 11:25 EST, the euro advanced 0.42 percent against the dollar, trading at $1.2995 (NYSEARCA:FXE).
Spain’s ten-year bond yield declined to 5.45 percent on Tuesday from Monday’s closing level of 5.54 percent. Spain’s two-year bond yield dropped to 2.98 percent on Tuesday from Monday’s closing level of 3.05 percent (NYSEARCA:EWP).
Italy’s ten-year bond yield fell to 4.75 percent on Tuesday from Monday’s closing level of 4.84 percent (NYSEARCA:EWI).
On London’s ICE Futures Europe Exchange, January futures for Brent crude oil advanced by 15 cents (0.14 percent) to $106.36/bbl. (NYSEARCA:BNO, NYSEARCA:USO).