BE: European shares buoyed by rise in retail stocks
A rise in retail shares pushed up European equities today, while expectations of new economic stimulus measures from the European Central Bank (ECB) also propped up stock markets.
The STOXX Europe 600 Retail Index rose 1.9 percent, outperforming a 0.8 percent advance in the broader, pan-European STOXX 600 index and a similar rise in the pan-European FTSEurofirst 300 index.
German retailer Metro AG climbed 3 percent after it reported strong Christmas sales.
British supermarket operator Morrison also rose 5.6 percent as investors welcomed the departure of Morrison boss Dalton Philips, who had presided over weak Christmas trading figures.
The European energy sector underperformed as oil prices tumbled to their lowest levels in almost six years, but traders said this would help retailers as it theoretically would mean consumers would have more money to spend.
Italy's FTSE MIB equity index rose 0.7 percent, helped by the country's borrowing costs reaching new record lows on speculation that the ECB could unveil plans for government bond purchases at a meeting next week.
However, some traders remained cautious about the Italian market given the imminent departure of Italian President Giorgio Napolitano.
Greece's benchmark ATG equity index also rose 1.9 percent with the country's election on January 25 looming.
The leftist opposition Syriza party, which has said it will cancel austerity imposed under Greece's 240 billion euro ($283.3 billion) bailout and renegotiate some debts, is leading the polls, but some traders feel Greece will stay in the euro zone.
Rupert Welchman, European equities fund manager at Union Bancaire Privee, said that while he had reduced his holding of Greek shares, he did not want to be completely out of the Greek market in case it rallied after the January 25 vote.
Meanwhile, Japan's Nikkei share average fell as weak US stocks and falling oil prices dampened risk appetite, but a pause in the yen's strength helped the market trim earlier losses.
The Nikkei ended 0.6 percent lower at 17,087.71 after falling to as low as 16,828.27, nearing a one-month low of 16,672.94 hit on December 17.
The dollar fell as low as 117.74 yen earlier in the day, its weakest since December 17. It last traded at 118.69 yen. The broader Topix shed 0.4 percent to 1,374.69, and the JPX-Nikkei Index 400 fell 0.3 percent to 12,460.10.
