European Stocks Advance For Ninth Week On U.S. Economy
By Adria Cimino - Aug 4, 2012 4:30 AM GMT+0530
European stocks rose for a ninth week as U.S. economic data surpassed estimates, outweighing comments by the Federal Reserve and the European Central Bank that disappointed investors looking for more definitive steps to support growth.
Bankia SA (BKIA) posted the biggest gain in the Stoxx Europe 600 (SXXP) Index. Vestas (VWS)Wind Systems A/S rallied 11 percent after saying it has renegotiated its credit lines. Air France-KLM (AF) Group, Europe’s biggest airline, jumped 11 percent after reporting a narrower second-quarter loss.
The Stoxx 600 rallied 2.2 percent to 265.58 this week, its longest stretch of gains since January 2006. The benchmark gauge has climbed 13 percent over the nine-week period as policy makers eased repayment terms for Spanish banks and optimism grew that central banks will announce stimulus measures.http://www.bloomberg.com/news/2012-08-03/european-stocks-gain-for-ninth-week-on-u-s-jobs-draghi.html
Jobs Gains Topping Forecasts Ease U.S. Slowdown Concerns
By Shobhana Chandra - Aug 4, 2012 1:48 AM GMT+0530The U.S. economy generated more jobs than forecast in July as automakers and health-care providers boosted employment, easing concern the three-year expansion is faltering, even as the unemployment rate unexpectedly rose.
The payrolls increase of 163,000 followed a revised 64,000 gain in June, Labor Department figures showed today inWashington. The median estimate of 89 economists surveyed by Bloomberg called for a gain of 100,000. The jobless rate, based on a separate survey of households, climbed to a five-month high of 8.3 percent.
Stocks rallied, sending the Standard & Poor’s 500 Index to the highest level since May, as the jobs data countered recent reports showing a contraction in manufacturing and slower consumer demand. Faster job growth is needed to push down an unemployment rate that has been stuck above 8 percent since February 2009, one reason why the Federal Reserve this week said it is prepared to take new steps if needed to boost the economy.http://www.bloomberg.com/news/2012-08-03/u-s-july-payrolls-rise-more-than-forecast-unemployment-8-3-.html
World’s Richest Gain $19 Billion As Stocks Surge On Jobs
By David de Jong - Aug 4, 2012 3:30 AM GMT+0530The 40 richest people on the planet added $19.4 billion to their collective net worth yesterday after an increase in U.S. jobs and positive earnings reports erased losses sustained earlier in the week.
The day’s biggest gainer was Spanish retail tycoon Amancio Ortega, who added $2.8 billion to his fortune as shares of Inditex SA (ITX), the world’s largest clothing retailer, jumped 5.4 percent. The 76-year-old, Europe’s richest man, is worth $45.1 billion, according to the Bloomberg Billionaires Index.
“Investor sentiment has turned a little bit more positive,” said Kristen Scarpa, a New York-based investment strategist at Barclays Wealth Management, in a telephone interview yesterday. “Job growth is the key to igniting additional consumption, which will drive the U.S economy forward.”
Global stocks slumped earlier in the week after European Central Bank President Mario Draghifailed to articulate the details of a bond-buying plan to ease the euro area crisis. The Federal Reserve Bank’s pledge to provide additional support for the economy further disappointed investors who were anticipating a more definitive sign of additional monetary easing.http://www.blogger.com/blogger.g?blogID=3740406258246223636#editor/target=post;postID=761605679672940307
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