Europe rebounds on upbeat global data

European stock markets rebounded yesterday, on upbeat economic data from China and the chance of advances in the eurozone debt crisis, especially in Greece and Spain. London’s benchmark FTSE 100 index of top companies rose by 0.21% to close at 5,805.61 points, Frankfurt’s DAX 30 added 0.40% to 7,261.25 points and in Paris the CAC 40 advanced by 0.92% to 3,420.28. Madrid’s IBEX 35 index climbed by 0.34% to 7,678.50 points as Spain said it hoped EU leaders would progress rapidly at a summit this week towards a direct recapitalisation of the country’s troubled banking system. CitiFX analyst Valentin Marinov said: “Some investors and market analysts are already looking at the November EU summit for potential resolution of the issues in Spain and Greece.” In New York, stock markets also posted gains in midday trades, with the Dow Jones Industrial Average up by 0.50%. The broader S&P 500 index advanced by 0.45%, while the tech-rich Nasdaq added 0.42%. Stronger early European gains were pared back somewhat by contrasting US economic data. While the latest US retail sales number was unexpectedly strong, manufacturing activity in the region around New York declined for the third consecutive month. In foreign exchange trading on Monday, the euro edged down to $1.2952 from $1.2958 late in New York on Friday. Gold prices slid to $1,736 an ounce on the London Bullion Market from $1,766.75 an ounce on Friday. “We could be set for a game changing week in the eurozone,” suggested Craig Erlam, a market analyst at Alpari trading group. Greek Prime Minister Antonis Samaras told the newspaper Kathimerini in comments published on Sunday said that €13.5bn ($17.5bn) in spending cuts could be approved by parliament “in a matter of days” after the European summit on October 18. But Finance Minister Yannis Stournaras said yesterday that a deal with IMF-EU-ECB auditors is unlikely before the summit. “We are trying, but I don’t think so,” he told reporters in relation to the chances of a deal before Thursday. “The negotiations will continue until the summit and beyond,” he said. The approval of the auditors is necessary for the EU and IMF to release the next loan instalment of €31.5bn to Greece under the country’s international bailout. Also on Sunday, the curtains came down on IMF and World Bank meetings that were dominated by a discussion over whether austerity or growth should take centre stage as the world economy seeks a reboot. In Portugal and Spain, thousands of protesters had marched on Saturday to protest against austerity measures approved by their governments to tackle their debt crisis. Portugal received a €78bn bailout in May 2011 to help it battle its debt crisis. Neighbouring Spain’s economy is in recession, with one in four workers unemployed.