Equities gain post-EU plan, euro struggles
Friday, 14 May 2010
LONDON, May 13 (Reuters): A post-EU rescue plan stock rally remained in place Thursday with emerging market shares up more than 1 per cent and global stocks in general adding to the week's gains.
The euro was also stronger, but traded near recent lows against the dollar against a backdrop of expectations for weak euro zone growth.
The Ascension Day holiday stripped some volume, but major markets were open.
World stocks have risen close to 6 per cent this week following the weekend's 750 billion euro agreement by the European Union and International Monetary Fund to stave off a sovereign debt crisis.
They were up around half a per cent Thursday with emerging markets putting in a 1.1 per cent gain.
The rescue plan has not solved Europe's debt problems but it has put a floor under investors' worst fears of a new financial meltdown and allowed for some pick-up in risk appetite, with credit spreads tightening.
Investors have also been able to focus more on fundamentals such as the state of the economy and corporate earnings rather than reacting to fears over Greece and other EU peripheral economies.
The euro was also stronger, but traded near recent lows against the dollar against a backdrop of expectations for weak euro zone growth.
The Ascension Day holiday stripped some volume, but major markets were open.
World stocks have risen close to 6 per cent this week following the weekend's 750 billion euro agreement by the European Union and International Monetary Fund to stave off a sovereign debt crisis.
They were up around half a per cent Thursday with emerging markets putting in a 1.1 per cent gain.
The rescue plan has not solved Europe's debt problems but it has put a floor under investors' worst fears of a new financial meltdown and allowed for some pick-up in risk appetite, with credit spreads tightening.
Investors have also been able to focus more on fundamentals such as the state of the economy and corporate earnings rather than reacting to fears over Greece and other EU peripheral economies.