Forexpros – European shares traded higher Thursday, as a spate of solid earnings and hopes of a Greek political solution triggered the risk on trade
At the close of European trade, the EURO STOXX 50 closed up 0.98%, France’s CAC 40 gained 0.37% and Germany’s DAX pushed higher by 0.66%. Meanwhile, in the U.K. the FTSE 100 traded higher by 0.25%.
Estimate beating earnings powered shares higher with Deutsche Telecom climbing 3% and Repsol surging 8.2% on the session
Further supporting the risk on trade, a European Commission official stated that Greece’s financial needs are covered, despite the political struggle of forming of new government.
In addition, speculation is positive that Greek Socialist leader Evangelos Venizelos would manage to form a government on Thursday.
Venizelos, who was the country’s former finance minister, stated he would approach all political party leaders and try to get New Democracy, Syriza and Democratic Left to form a pro-European national unity government.
On Wednesday, Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government, pushing the debt-stricken country closer to its second election in a few weeks.
In the U.S., the Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending May 5 fell to 367,000, defying expectations for an increase of 1,000 to 369,000.
The previous week’s figure was revised up to 368,000 from 365,000.
Meanwhile, a separate report indicted the U.S. trade deficit widened to USD51.8 billion in March from deficit of USD45.4 billion in February.
Analysts had expected the U.S. trade deficit to widen to USD50.0 billion.
Data also indicated that import prices in the U.S. fell more-than-expected in April, declining 0.5% after a 1.5% the previous month. Analysts had expected import prices to fall 0.1% in April.
Surprisingly, the National Bank of Greece surged 12% on the positive Greek economic hopes.
KBC Groep added 9.4% after posting a smaller than expected drop in first quarter profits.
In the United States, shares are following higher with the Dow up 0.48%, the S&P 500 adding 0.45% and the Nasdaq easing up 0.03%
Investors are anticipating the U.S. and Great Britains PPI and Michigan consumer sentiment numbers Friday.
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