New York
London
Hong Kong
Tokyo
Sydney

European Shares Surged After Positive U.S. Data

Share on Tumblr

After U.S. non-farm payrolls data beat expectations, European shares surged past a resistance level to raise optimism that the world's largest economy was on track for a recovery.

Prospects for stronger economic growth that could feed through into company earnings were boosted by a near three-year low drop in the unemployment rate and the U.S. non-farm payrolls rising to at their fastest pace in nine months.

"The (job data) numbers are phenomenal, you would have thought December would have been a seasonal blip, but obviously not," said Manoj Ladwa, senior trader at ETX Capital.

"It shows the world's biggest economy is on track and as a result of this, we could see consumer spending continuing to improve and that could mean the prospects for equities improving as well."

The pan-European FTSEurofirst 300 .FTEU3 index of top shares was up 1.1 percent by 1406 GMT at 1,071.42 points after being as low as 1,056.55. The index broke past its 61.8 percent Fibonacci retracement level at 1,062.24 points in a bullish move from its February 2011 high to September 2011 low, which had been a major resistance level.

I am not sure if this surge

I am not sure if this surge in European shares can sustain itself for long.

Forex Blog

  • Agreement To Budget Targets A Must For The European Commission said in a statement recently that Portugal must stick to targets agreed with international lenders if it wants more time to repay bailout loans. The constitutional court of... Read More >
  • Asian Shares And Euro Rise On Draft On Monday, Asian shares and the euro rose after European Union sources revealed the President of Cyprus and the EU have agreed the outlines of a rescue deal to avert financial meltdown on the... Read More >
  • New Law Passed By Greece To Spur The Greek parliament has approved a legislation to boost private investment, a key condition to get the crisis-struck country out of its worst-ever peacetime recession. Read More >
  • Five-Year Plan Outlined By Sherbank To The largest bank of Russia has outlined a plan to investors under which the bank, Sberbank, is planning to enhance efficiency while sustaining profits over a period of five years, according to a... Read More >
  • Winning Streak Of Dow Ends On Friday, Wall Street stocks fell as a drop in JPMorgan Chase led to the end of the 10-day rally of Dow Jones industrial average while the United States dollar retreated from a high of seven months... Read More >