World Economy

German Markets Rise, Lenders Gain

German Markets Rise, Lenders GainGerman Markets Rise, Lenders Gain

The German market was firmly in positive territory on Thursday, as optimism reigned about a deal between Greece and its international creditors, after the Mediterranean nation promised to implement pension and tax reforms to win fresh aid from skeptical creditors.

On the economic front, Germany’s exports logged an unexpected growth in May, data from Destatis revealed. Exports rose 1.7% in May from the prior month, confounding expectations for a 0.8% fall. It was the fastest growth rate seen so far this year, RTT reported.

The Bank of England is scheduled to announce its interest rate decision at 7:00 am ET. Economists expect the central bank to retain interest rates unchanged at 0.50% and the asset purchase target at £375 billion ($582 billion).

Meanwhile, consumer prices in China were up 1.4% on year in June, the National Bureau of Statistics said. That exceeded forecasts for 1.3% and was up from 1.2% in May.

The Euro Stoxx 50 index of eurozone bluechip stocks added 1%, while the Stoxx Europe 50 index, which includes some major UK companies, rose 0.9%. The DAX index added 1.65%. BMW rose 2.2%, while Volkswagen and Daimler added 2% each. Tiremaker Continental added 1.4%.

Deutsche Bank and Commerzbank were rising 1.9% and 1%, respectively.

Bayer added 1.4% and HeidelbergCement advanced 1.2%. Other markets in the region were also trading higher.

The Asian stocks reversed early losses to end on a steady note, as a rebound in battered Chinese markets offered a sense of relief to investors worried about broader implications for the global economy.

In the US, futures point to a higher open on Wall Street. In the previous session, the Dow plunged 1.5% to close at a five-month low, while the S&P 500 and the tech-heavy Nasdaq plummeted 1.7% and 1.8%, respectively to close at their worst levels since March and April. The NYSE halted trading for more than three hours due to technical problems.

Crude for August delivery rose $0.79 to $52.44 per barrel.

Meanwhile, on a light day for economic news, figures from Destatis showed German wholesale prices continued to decline in June. Wholesale prices dropped 0.5% year-on-year in June, slightly faster than May’s 0.4% fall.