MW: European stocks gain as German sentiment improves; Greek shares up
European stocks were higher Friday, with improvement in German business sentiment a pillar of support as equities moved toward a weekly gain.
The Stoxx Europe 600 SXXP, +0.22% rose 0.7% to 409.95, with all sectors advancing.
Germany’s DAX 30 DAX, +0.30% was up 0.9% to 11,824.40. The widely watched Ifo sentiment survey for April rose to 108.6 from 107.9 in March, reaching its highest level since June 2014. Economists polled by The Wall Street Journal had expected the indicator to rise to 108.4.
The findings from Ifo Insitute “could add to evidence that eurozone’s growth engine is gathering steam, despite the weak preliminary manufacturing and service-sector PMIs on Thursday,” said Marshall Gittler, head of global currency strategy, at IronFX Global Ltd., in a note early Friday. The effects from lower oil prices and a weaker euro “is likely to slowly feed through the real economy going forward and could provide further support to domestic sentiment.”
The euro EURUSD, +0.04% rose following the release of the survey, and traded at $1.089, compared with $1.0826 late Thursday.
On other major stock indexes, France’s CAC 40 PX1, +0.17% rose 0.8% to 5,221.97 and the U.K.’s FTSE 100 UKX, +0.27% gained 0.6% to 7,093.10.
Greece’s Athex Composite GD, +3.11% was up 3.3% to 761.08, and Greek bond prices fell, as investors waited to what eurozone finance ministers meeting in Riga, Latvia, have to say about the country’s debt troubles. Greece and its creditors have been unable to reach a deal on the economic reforms needed for Athens to receive the next tranche of bailout funds.
