The projection of the rise in the German business confidence along with an increase in the European earnings resulted in sharp rise at stock markets world over. This has made investors stop worries about the Greek debt crisis. The trading in Europe began with strong FTSEurofirst 300, which is pan-regional in nature. The FTEU3 index has increased around 0.6 percent initially. The Nikkei in Tokyo and Chinese main markets in Asia show growth of 1.4 percent and 2.5 percent respectively. The weaker euro and better economic conditions fuelled by European Central Bank’s bond-buying stimulus strategy is working out well for inward investments in the equity markets. ARM holdings, Sky, Publicis showed upward growth of around 4 percent while closing.
ZEW business confidence indicator, Germany’s reliable confidence index was expert to project the better status of the German economy as its sentiment gauge increased to 55.3 from previous ratings of 54.8. The results will be out by 5 a.m. EDT. The current conditions of the index are stable at 56.0 from 55.1 ECONG7.
Chief Economist Neil Williams at Hermes, hedge fund manager firm based in London informed that macro picture of the economy looks promising. The worst possible consequences of the Eurozone crisis are over. The situation is less bad now.
The Economists further added that the Greece should remain on the watchlist and the country must restructure its debt, Euro is only good in increasing the confidence of the investors.
The hopes of Greece getting another date for paying its loan are very less. The country will negotiate the conditions with Eurozone finance minister and plead for further financial support to run the economy.