European Markets Post Gains As Germany Cuts a Key Rate
May 04, 2011
Many markets also received a boost from Thursday's strong early performance on Wall Street. The Bundesbank allowed its securities repurchase, or repo, rate to be lowered to 3% from 3.30%, well above the 0.05 to 0.20 percentage point cut many analysts had expected. The repo rate is the bank's main instrument for influencing the money market. Bond markets rallied on the news, carrying stocks higher in London, France, Germany, Milan, Belgium, Spain and Stockholm. Meanwhile, gains posted by drug-maker Redding, led Swiss share prices higher, but gold shares on South Africa's Johannesburg exchange declined due to overseas selling. In dollar terms, the European sector of the Dow Jones World Stock Index rose 0.50 to 145.91 Thursday, following Wednesday's loss of 0.26. The world index as a whole gained 0.93 to 140.33, after gaining 0.23 a day earlier. Biotechnology and semiconductor stocks led the Dow Jones Global Industry Groups, while oil-drilling and tobacco issues were among the laggards. European Stock Market Indexes Market Belgium
