The European markets ended Thursday's session with strong gains with global markets in rally mode. The Japanese stock market jumped over 3 percent on its first trading day of the New Year and markets on Wall Street reached new record highs.
Energy stocks turned in a strong performance Thursday. Crude oil prices continue to march higher as investors keep an eye on the anti-government protests in Iran. Better-than-expected U.S. car sales data also provided a boost to automakers. Bank stocks were also among the day's gainers.
Solid economic data also contributed to the positive mood among investors. Eurozone private sector expanded the most since early 2011.The larger than expected increase in U.S. private sector employment gave investors reason to smile ahead of tomorrow's December jobs report.
The pan-European Stoxx Europe 600 index advanced 0.90 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 1.68 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.82 percent.
The DAX of Germany climbed 1.46 percent and the CAC 40 of France rose 1.55 percent. The FTSE 100 of the U.K. gained 0.32 percent and the SMI of Switzerland finished higher by 0.32 percent.
In Frankfurt, Commerzbank increased 1.92 percent and Deutsche Bank rose 2.51 percent.
BMW climbed 0.75 percent, Daimler gained 1.21 percent and Volkswagen added 1.93 percent. Renault increased 1.34 percent in Paris and Peugeot closed higher by 1.37 percent.
In Paris, Remy Cointreau dropped 2.85 percent after Investec downgraded the stock.
Credit Agricole advanced 4.52 percent, Societe Generale rose 2.46 percent and BNP Paribas finished up by 1.80 percent.
In London, department store chain Debenhams sank 14.73 percent after a profit warning.
Hotel and restaurant group Whitbread rose 0.68 percent after appointing ex-ITV boss as its new chairman.
Vectura Group gained 0.33 percent after maintaining its local currency revenue growth expectations for 2018.
Eurozone private sector expanded the most since early 2011 driven by a near-record expansion of manufacturing and the steepest rise in service sector for over six-and-a-half years.
The composite output index rose to 58.1 in December from 57.5 in November, final data from IHS Markit showed Thursday. This was the highest score since February 2011. The score was slightly above the flash estimate of 58.0.
British service sector growth accelerated at a faster-than-expected pace in December, survey data from IHS Markit showed Thursday. The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index, rose to 54.2 in December from 53.8 in November. Economists had expected the index to rise to 54.0.
The UK mortgage approvals rose unexpectedly in November, data from the Bank of England revealed Thursday. The number of mortgages approved for house purchases totaled 65,139 in November compared to 64,887 in October. Approvals were forecast to fall to 64,000.
UK house prices increased at a slightly faster pace at the end of 2017, data from Nationwide Building Society showed Thursday. House prices grew 2.6 percent year-on-year in December, slightly faster than the 2.5 percent rise seen in November. The annual rate was expected to ease to 2 percent.
The services sector in China continued to expand in December, and at an accelerated pace, the latest survey from Caixin showed on Thursday with a PMI score of 53.9. That's up from 51.9 in November, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
A report released by payroll processor ADP on Thursday showed private sector employment in the U.S. jumped by much more than expected in the month of December. ADP said employment in the private sector surged up by 250,000 jobs in December after climbing by a downwardly revised 185,000 jobs in November.
Economists had expected an increase of about 190,000 jobs, matching the job growth originally reported for the previous month.
With the release of the closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing an unexpected uptick in first-time claims for U.S. unemployment benefits in the week ended December 30th.
The report said initial jobless claims edged up to 250,000, an increase of 3,000 from the previous week's revised level of 247,000. Economists had expected jobless claims to drop to 240,000 from the 245,000 originally reported for the previous week.
by RTT Staff Writer
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