During European afternoon trade, the EURO STOXX 50 advanced 0.2%, France’s CAC 40 climbed 0.35%, while Germany’s DAX 30 rose 0.1%.
With most investors already away on year-end leave, trading volumes were thin, resulting in tight liquidity conditions and irregular volatility.
Market sentiment found support after a stronger-than-expected auction of Italian government debt earlier in the day.
Italy’s Treasury sold EUR9 billion of six-month bills, at an average yield of 3.25%, down from a record-high 6.50% in a previous auction in November. The country also sold EUR1.73 of two-year zero-coupons at a 5% yield.
Following the auction, the yield on Italy’s 10-year bonds traded at 6.82%, falling slightly below the 7% threshold widely seen as unsustainable in the long-term.
Despite the upbeat results, Thursday’s sale of EUR8.5 billion of long-term Italian debt maturing between 2014 and 2022 was seen as a bigger test of market confidence in the country’s sovereign debt.
Financial stocks were mixed as shares in Germany’s Deutsche Bank declined 1.77% and Dutch lender ING Group fell 1.06%, while France’s BNP Paribas advanced 0.40%.
The French lender announced earlier its plans to form a joint venture with OAO Sberbank to offer consumer credit in Russia.
Meanwhile, peripheral lenders turned higher, led by Italian bank Intesa Sanpaolo, surging 1.64%, while Spain’s BBVA and Banco Santander climbed 0.15% and 0.48% respectively.
Elsewhere, French group Carrefour rose 0.12%, erasing earlier losses, on news the company is about to sell and lease back 97 supermarket sites in France. 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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