European Markets Rise On Encouraging Data From Asia

By Bhaskar Prasad | July 02 2012 4:13 AM

Most European markets rose Monday as investors were encouraged by the hopeful economic indications from Asia and also the measures taken at the EU summit last week.

REUTERS

Traders work at their desks in front of the DAX board at the Frankfurt stock exchange January 16, 2012.

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The French CAC 40 index was up 0.22 percent or 7.11 points to 3203.76. Shares of Credit Agricole SA rose 1.87 percent and shares of BNP Paribas SA advanced 0.48 percent.

London's FTSE 100 index rose 0.20 percent or 11.37 points to 5582.52. Shares of BG Group PLC rose 1.12 percent and those of Experian PLC climbed 1 percent.

The German DAX 30 index marginally fell 0.08 percent or 5.31 points to 6410.97. Shares of SAP AG rose 1.17 percent and shares of Volkswagen AG declined 1.20 percent.

Spain's IBEX 35 fell 0.2 percent or 13.90 points to 7088.30. Shares of Bankia SA declined 1.95 percent and those of Indra Sistemas SA climbed 1.31 percent.

According to the Tankan survey released by the Bank of Japan Monday, large manufacturers' outlook index improved to -1 in June up from -4 in March. Market sentiment turned positive with the improvement in the outlook index, indicating that the economic condition of Japan is on the path of recovery.

Investors were also hopeful of monetary easing measures from China as data released Sunday by the National Bureau of Statistics and China Federation of Logistics and Purchasing showed that the country's Purchasing Managers' Index declined to 50.2 in June from 50.4 in May.

Market players also continued to be cheering the measures agreed at the EU summit in Brussels. The investors expected that the steps announced would help reduce the borrowing costs of Spain and Italy.