Stock markets worldwide rose yesterday on stronger-than-expected German economic growth data and optimism that Greece could reach a deal with its creditors, while oil prices gained on signs that excess supply may ebb.
Germany grew 0.7 per cent in the fourth quarter, more than double the expected 0.3 per cent rate, pointing to a stronger 2015 for the eurozone’s biggest economy.
The growth in Germany boosted the overall eurozone economy, which accelerated by 0.3 per cent. Top European shares hit a seven-year high, while Germany’s DAX index hit a record high. US shares nudged higher, with the benchmark S&P 500 index hitting an intraday record high.
Greek equities rallied nearly six per cent as shares of Greek banks surged on signs the country could reach a deal with creditors.
A Greek government spokesman said the country will make every effort to reach a deal at Monday’s meeting of eurozone finance ministers on how to transition to a new support programme.
Oil rose above $60 a barrel for the first time this year, supported by signs that deeper industry spending cuts may curb excess supply. Brent crude was last up $2.17 at $61.45 a barrel.
US crude was last up $1.94 at $53.15 per barrel.
The Dow Jones industrial average was last up 54.58 points, or 0.3 per cent, at 18,026.96.
The S&P 500 was up 5.7 points, or 0.27 per cent, at 2,094.18.
The Nasdaq Composite was up 14.32 points, or 0.29 per cent, at 4,871.93.
US stocks largely took in stride data showing the biggest drop in US import prices in six years and weaker-than-expected US consumer sentiment.
In Europe, the FTSEuroFirst index of 300 leading shares was last up 0.66 per cent, at 1,503.03. MSCI’s all-country world equity index rose 2.84 points, or 0.67 per cent, to 427.53.
The dollar fell broadly for a second straight session, pressured by the weak US data. The euro was steady against the dollar, on course for a third straight week of gains, its best performance in just under a year.
The strong data out of Germany and optimism that Greece could reach a debt deal drove up German government debt yields, which in turn led US Treasury yields higher.
Benchmark 10-year Treasury yields were last at 2.02 per cent, from 1.99 per cent late on Thursday.
The dollar’s weakness helped gold rise one per cent, erasing a week of losses.
Spot gold prices were last up $9.66 or 0.79 per cent, to $1,231.86 an ounce.