European stocks rally as bond yields stall

European stocks closed higher on Thursday as falling government bond yields offered some relief, while investors await global data in the coming days that could offer further clues as to where major central banks stand on easing of monetary policy.

The pan-European STOXX 600 index closed 0.6% higher after falling in the past two sessions, settling near a three-week low.

Government bond yields in the region fell, with German 10-year bonds at 2.654%, although they remained near a six-month peak after rising in the previous session following weak Treasury auctions and strong data that put the spotlight on interest rate cuts are doubtful.

Money markets expect interest rate cuts of around 35 basis points by the Federal Reserve this year, while the European Central Bank is expected to make its first cut next week.

Real estate led gains in the STOXX 600 with a jump of 1.9%, while telecom stocks rose 1.6%.

IN LONDON the Financial Times index advanced by 0.59%, to 8,231.05 points.

IN FRANKFURT the DAX index rose by 0.22%, to 18,514.08 points.

IN PARIS, the CAC-40 index gained 0.55%, to 7,978.51 points.

IN MILAN the Ftse/Mib index grew by 0.87%, to 34,447.57 points.

In MADRID, the Ibex-35 index recorded an increase of 1.73%, to 11,338.20 points.

In LISBON, the PSI20 index increased by 0.61%, to 6,839.50 points.

Source: Terra

Rose

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