Tuesday, October 16 08:40:34
European shares climbed higher early today, taking their cue from a bullish close overnight in the U.S. and Asia after upbeat economic data and results from banking giant Citigroup helped lift sentiment. By 0703 GMT, the FTSEurofirst was up 6.28 points, or 0.6 percent at 1,104.64, while the EuroStoxxx 50, the euro zone blue chip index, was up 1.0 percent, with both indexes 15-20 percent higher than their year lows hit in June.
"The discount (priced into assets for euro zone and global growth worries) is clearly reduced and next year we expect the economy will pick up. Equities are forward looking and if you wait for the pick-up it will be too late," Achim Matzke, European stock indices analyst at Commerzbank, said. Through technical analysis he expects the Dax to close 2012 around 7,600 and the Stoxx 50 to end 2012 around 2,600.
Euorpean banking stock led the market higher, buoyed by Citigroup's forecast-beating earnings on Monday. On Tuesday, investors awaited earnings from bellwethers such as Goldman Sachs, IBM and Intel, seeking further insight on the impact from the global slowdown on corporate results. ( C) Reuters