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European Stocks Climb
World Economy

European Stocks Climb

European stocks climbed Tuesday, following US markets in largely shrugging off Friday’s weak jobs data, while the dollar sprang back after Friday’s swoon.
The Stoxx Europe 600 was 1.2% higher mid-morning as markets reopened after the Easter holiday weekend. European shares took their cue from Wall Street, where markets gained Monday despite March nonfarm payrolls showing the weakest pace of hiring in 15 months, MarketWatch reported.
Investors were prepared for a slowdown, while stocks also drew some support from the possibility the Federal Reserve may be inclined to delay interest rate rises for longer given the recent soft run of US economic data, analysts said.
Investors “have concluded that the dovish implications trump any growth concerns for now,” said Ian Williams, economist and strategist at brokerage Peel Hunt.

  Other Stocks
Japan’s Nikkei index climbed 1.3% overnight as the positive tone spread to Asia. In Europe, Germany’s DAX was 1.0% higher, France’s CAC 40 was up 1.2%, and the UK’s FTSE 100 gained 1.1%.
Stocks were given an additional boost by the latest signs that the economic recovery in the eurozone is gathering pace. Data Tuesday showed the fastest expansion in private sector activity for 11 months, despite slight downward revisions to initial estimates.
“Even though European stocks have outpaced their US counterparts in recent months, there is scope for this trend to gain further momentum over the near term. The improving macroeconomic backdrop in the single currency region is a major plus,” saidLuca Paolini, chief strategist at Pictet Asset Management.

  Currency
In currency markets, the euro fell 0.8% against the dollar to $1.0854, giving back its gains against the buck in the wake of Friday’s jobs number.
The euro’s inability to spend much time above $1.10 is evidence that the European Central Bank’s bond purchase program and negative interest rates continue to drive flows of cash out of the euro area, currency strategists at BNP Paribas said.
The dollar’s rally was broad; Sterling fell 0.3% against the dollar to $1.4850, despite some strong UK service sector data, while the buck also rose to Y120 against the yen.

 

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