European stocks were higher Wednesday and the euro
was steady as markets digested a mixed set of U.S. economic data in
subdued trade ahead of the Christmas holiday break.
Dealers said that after a volatile and dramatic year
driven by fears the Eurozone debt crisis will tip the world into
recession, the tone has turned slightly more positive, driven mainly by
recent U.S. figures.
Data Thursday showed another improvement in the U.S. job
market as unemployment claims continued to fall but third quarter
growth was revised down to 1.8 percent from 2.0 percent.
Dealers said the U.S. economic outlook is overall much
better than thought just a few months ago but concerns over Europe
weigh, with the European Central Bank's massive liquidity injection
Wednesday continuing to get mixed reviews.
In London, the benchmark FTSE 100 index of top companies
was up 1.23 percent at around 1500 GMT, helped by an upwards revision
to British third quarter growth. Paris and Frankfurt were each up 1.16
percent.
Madrid added 1.03 percent and Milan gained 1.49 percent.
The euro was little changed at $1.3049 from $1.3046 late in New York on Wednesday.
"Markets are a little perkier following a flat to
positive session for US markets," said Simon Denham, head of Capital
Spreads trading group.
"Buyers seem to be relieved that the selloff in Europe (on Wednesday) did not follow through to U.S. trading."
In New York, the market was firmer in quiet trade. The
blue-chip Dow Jones Industrial Average added 0.39 percent and the Nasdaq
Composite gained 0.67 percent.
"A generally quiet session with little news flow has
been favorable to the bulls who are still waiting for the year-end Santa
Claus rally," said analysts at Briefing.com.
The fall in U.S. jobless claims to 364,000 last week, much better than forecasts for 380,000, helped sentiment.
"The U.S. has been creating jobs for 14 months in a row
and the all-inclusive jobless rate has fallen to 15.6 percent from the
17.4 percent peak," said Jennifer Lee of BMO Capital Markets.
"In other words, the job market is improving."
The third quarter revised growth figures were not "great
news," Lee said, adding: "But the details weren't that bad and our view
doesn't change with this revision."
Denham at Capital Spreads said the "U.S. economy is
growing well and some of the recent economic data has been surprising to
the upside."
Asian markets closed lower after the ECB provided cheap
three-year loans to 523 banks worth a record 489.2 billion euros ($641
billion), sparking some unease that the lenders needed so much funding.
Others suggested the funds, on offer at just 1.0
percent, were simply too good an opportunity for the banks to pass up as
it allows them to cover financing needs going into next year.
Tokyo fell 0.77 percent on Thursday, Hong Kong lost 0.21 percent and Sydney shed 1.18 percent.
