Euro stocks rise, thanks in part to American shoppers
Euro stocks climbed higher Tuesday after strong signs from US consumers and the Italian debt sales. But warnings over Italy could send euro, stocks tumbling soon.
Euro stocks rose and the euro gained Tuesday on a rebound in U.S. consumer confidence and after an Italian debt sale met strong demand despite record high rates that analysts warned were unsustainable.
Stocks extended gains and the euro rose further against the dollar after the Conference Board, an industry group, reported that U.S. consumer confidence bounced back in November from a 2-1/2-year low as worries about job and income prospects eased.
European shares extended a low-volume rally into a third day on hopes policy makers will make progress toward containing the debt crisis at a meeting later on Tuesday, even as Italy sold three-year debt at a euro lifetime high.
The euro rose 0.2 percent to $1.3341.
``It is a great sign that the auction was oversubscribed, suggesting that we seem to be moving forward with progress there,'' said Paul Zemsky, the New York-based head of asset allocation for ING Investment Management.
``That said, the yields remain quite high, so we're not sounding an all-clear just yet,'' added Zemsky, who helps oversee $445 billion in assets.
Italy had to offer a record 7.89 percent yield to sell its bonds, a stunning leap from the 4.93 percent it paid in late October.
The FTSEurofirst 300 of leading European shares closed up 0.75 percent at 947.89 points.