By William L. Watts, MarketWatch
FRANKFURT (MarketWatch) -- European stocks traded near session
highs Thursday as Wall Street appeared set to extend a historical
winning streak after first-time claims for U.S. jobless benefits
unexpectedly fell and wholesale prices rose in line with
expectations.
The Stoxx 600 Europe Index rose 0.7% to 297.43 and traded as
high as 297.63, its highest level since June 2008.
"Equities resumed their upward trend in early trade this morning
following a ninth consecutive up day for the Dow 30. Inevitably
there will be much chatter today about the index potentially
extending its winning streak to double digits," said Matt Basi,
head of U.K. sales trading at CMC Markets UK.
Banks and financials led the way higher, with insurer Prudential
PLC rising 3% to add to the previous day's strong gain on the back
of earnings results, while index heavyweight HSBC Holdings PLC
(HBC) advanced 1.5%.
The number of people applying for first-time U.S. jobless
benefits fell by 10,000 to 332,000 in the week ended March 9--the
second lowest level in five years. Economists surveyed by
MarketWatch had forecast a rise to 350,000.
Separately, data showed the producer price index rose 0.7% in
February, matching expectations. U.S. stock index futures extended
gains.
Closer to home for European investors, European Union leaders
prepared for a summit meeting due to get under way in Brussels on
Thursday. Euro-zone finance ministers are scheduled to meet Friday
to further discuss a bailout for Cyprus.
"I think a bailout program is fully priced into the markets at
the moment but I think investors will be looking for some
reassurance on the matter, given Greece's exposure to the country
and the potential for a run on the banks in Cyprus if lenders
attempt to force losses on depositors," said Craig Erlam, market
analyst at Alpari in London.
U.S. stocks ended slightly higher Wednesday, with the Dow (DJI)
extending its win streak, making it the longest such run in 16
years.
BNP Paribas SA rose 2.4%, while France's CAC 40 stock index
added 0.8% to 3,866.40.
Italy's FTSE MIB stock index bucked recent weakness to rise
1.8%, with shares of Assicurazioni Generali SpA up more than
7%.
Generali rose after reporting that net profit for the year
dropped by around 89%, with the results reflecting large
fourth-quarter impairments as new Chief Executive Mario Greco moved
to clean up the company's balance sheet.
"We are simplifying our structure and adopting a more
disciplined approach to managing the Group and its investments, as
we refocus on our insurance business," Greco said in a
statement.
Germany's DAX stock index advanced1.1% to 8,055.85. Shares of
HeidelbergCement AG rose 4.1% after the company said it was aiming
for higher revenue and operating income this year, boosted by
demand in Asia, Africa and the U.S.
Shares of steelmaker ArcelorMittal (MT) rose 2.8% in Amsterdam
after analysts at Citibank upgraded its stock to buy from
neutral.
"We believe there is now an opportunity to buy into the first
potential steps towards a strategic overhaul for the company --
dealing with the languishing European business," the analysts said
in a research note.
"Ultimately we would favor a separation of the European assets
from the rest of the group, to aid consolidation in the region and
give investors exposure to the stronger businesses in the company,"
they said.
London's FTSE 100 stock index rose 0.4% to 6,508.37.
Other heavyweight gainers in London included telecom firm
Vodafone Group PLC , which added 0.9%, while Barclays PLC gained
1.3% and grocer Tesco PLC advanced 1.7%.
Natural resource firms lost ground, with Rio Tinto PLC off
1.6%.
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