European stock markets november 24 2011

European stock markets november 24 2011 : European stock markets were broadly higher on Thursday, after a report showed an unexpected improvement in German business confidence and as markets took in stride news that ratings agency Fitch downgraded Portugal’s sovereign rating to junk status.

During European afternoon trade, the EURO STOXX 50 jumped 1.05%, France’s CAC 40 rose 1.15%, while Germany’s DAX 30 climbed 1.3%.

German research institute Ifo said earlier that its business climate index rose for the first time in four months in November, climbing to 106.6 from 106.4 in October. Analysts had expected the index to fall to 105.5.

European equities shrugged off news that Fitch downgraded Portugal’s sovereign rating to BB+ from BBB-, with a negative outlook. The agency cited the country's large fiscal imbalances, high indebtedness and poor economic outlook.

Shares in the hard-hit financial sector led gains, recouping some of the previous session’s steep losses. French lenders BNP Paribas and Societe Generale rallied 5.15% and 4.3% respectively, Commerzbank shares surged 7.7%, while Italian lender Unicredit jumped 5.1%.

Belgian lender Dexia saw shares soar 29.3% a day after a Belgian report said Belgian and French officials were seeking to renegotiate a bailout deal for the troubled bank.

Meanwhile, shares in French steel-tube manufacturer Vallourec climbed 7.3% after Morgan Stanley upgraded the stock to ‘overweight’, saying that the company was likely to benefit from increased spending on pipelines by oil companies in the coming years.

Automakers also contributed to gains, with Volkswagen shares rising 3.1% and Peugeot climbing 5.7%.

Elsewhere, in London, the FTSE 100 rose 0.5% after ending lower for eight consecutive days, as miners and lenders led gains.

Mining giants BHP Billiton and Rio Tinto saw shares jump 3.45% and 2.95% respectively, copper producer Xstrata rose 3.9%, while silver producer Fresnillo added 3.8%.

U.K. lenders performed strongly, tracking their European counterparts higher. Barclays shares rallied 4.4%, Lloyds Banking Group jumped 4.3%, while Royal Bank of Scotland shares advanced 2.9%.

Meanwhile, shares in engineering company Weir Group surged 4% after Credit Suisse raised its target price on the stock, citing the company’s acquisition of U.S.-based oil and gas equipment maker Seaboard Holdings on Wednesday.

Trading volumes were expected to be light with U.S. markets shut for the Thanksgiving holiday. U.S. trading on Friday will be shortened. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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