European markets surges on weekend

European markets surges on weekend
Updated on

Summary Asian stock markets closed mixed on Friday, while the yen tumbled against the euro.

LONDON (AFP) - Europe s main stock markets rose on Friday as trading resumed after the Christmas break, but political crisis gripping Turkey sent its currency sliding to an all-time low against the dollar.

In morning deals, London s benchmark FTSE 100 index climbed 0.59 percent to 6,733.68 points.

In Paris, the CAC 40 won 0.97 percent to 4,259.49 points, compared with the close on Tuesday -- the last trading day for both the British and French bourses before shutting for the festive period.

Frankfurt s DAX 30 gained 0.77 percent to 9,562.23 points compared with the close on Monday, when it last traded.

"European shares are trading higher... following in the footsteps of firmer markets overnight across Asia and the US after yesterday s better than expected US weekly jobless claims data," said Markus Huber, senior trader at broker Peregrine & Black.

"There is plenty of optimism going around which is likely to drive markets to higher levels yet as we are nearing the end of 2013. Many are confident that 2014 will see economies around the world accelerate while interest rates are remaining at extraordinary low levels paving the way for higher corporate earnings in the quarters ahead."

In foreign exchange trading, the dollar rose to a high of 2.1467 Turkish lira, while the Istanbul stock exchange dropped 3.76 percent.

"Turkey is sinking into a political crisis and the Turkish lira is at an historic low," said Olivier Jakob of Petromatrix.

On Wednesday three top ministers whose sons have been caught up in police anti-corruption raids announced their resignations, with one calling on Recep Tayyip Erdogan to also step down in the first such challenge to the prime minister from within his own ruling Justice and Development Party (AKP).

The lira s fall came despite the decision of the Turkish central bank, announced Tuesday, to sell off some of its dollar reserves to shore up the currency, which was already weakened by the money tightening of the US central bank.

The Turkish central bank planned to inject 450 million dollars daily from now until December 31 and a total of three billion dollars in January to rescue the currency which has fallen 15 percent since January this year.

Elsewhere on Friday, the euro jumped to $1.3801 from $1.3690 late in New York on Thursday.

Gold advanced to $1,210.81 an ounce from $1,196.50 Thursday on the London Bullion Market.

Asian markets mixed, yen slides

Asian stock markets closed mixed on Friday, while the yen tumbled against the euro and the dollar.

The yen sank further as traders bet on further monetary easing by the Bank of Japan, while upbeat US data supported the greenback.

Late buying pushed Tokyo s Nikkei back into positive territory and a fresh six-year high, while a weaker yen also boosted the market.

On Thursday US stock markets continued their bull run of 2013 and positive unemployment figures offered more evidence of a firming economy.
The Dow shot up 0.75 percent to 16,479.88, finishing at a record high for the sixth straight session.

The latest record came after US Labor Department data showed first-time claims for unemployment benefits fell to 338,000 from an adjusted 380,000 the previous week. Analysts had projected that 350,000 claims would be filed.

Other better-than-expected economic news in recent days has increased confidence in the US outlook after the Federal Reserve announced on December 18 it was scaling back its massive bond-buying programme.

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