By Sara Sjolin, MarketWatch
Euro slides to $1.0813
LONDON (MarketWatch) -- European stock markets moved sharply
higher on Monday, boosted by easing hints from China, a slide in
the euro and a round of solid economic data.
The trifecta of encouraging events was enough to outweigh
ongoing concerns over Greece's struggle to reach a reform agreement
with international lenders before it runs out of money.
Indexes: Trading in Europe was already upbeat from the morning,
with sentiment getting a boost from Asia, where Chinese stocks
jumped
(http://www.wsj.com/articles/asian-shares-subdued-on-renewed-uncertainty-over-u-s-monetary-policy-1427681704)
on comments more monetary easing could be on its way. The Stoxx
Europe 600 index climbed 1.1% to close at 399.84, after last week
posting its worst week since mid-December.
Germany's DAX 30 index rallied 1.8% to 12,086.01, moving back
above the closely watched 12,000 level after losing its grip on it
last week. The DAX jumped above 12,000 for the first time on March
16
(http://www.marketwatch.com/story/germanys-dax-30-just-broke-above-12000-but-its-still-not-too-late-to-buy-2015-03-16),
but has struggled to extend its advance, and some analysts have
said it is time to sell the German benchmark
(http://www.marketwatch.com/story/it-is-a-perfect-time-to-say-auf-wiedersehen-to-the-dax-30-2015-03-20).
Richard Perry, market analyst at Hantec Markets, said the index
got a boost from a declining euro (EURUSD) on Monday, as well as
inflation data showing consumer prices grew 0.3% year-over-year in
March, up from 0.1% in February. The euro traded at $1.0813, down
from $1.0890 late Friday.
Elsewhere, France's CAC 40 index gained 1% to 5,083.52, while
the U.K.'s FTSE 100 index put on 0.5%
(http://www.marketwatch.com/storyno-meta-for-guid) to 6,891.43.
Other data: Economic confidence in the eurozone jumped to the
highest level since the summer of 2011
(http://www.marketwatch.com/story/eurozone-business-confidence-jumps-in-march-2015-03-30-54852410)
in March, indicating that businesses and consumers are becoming
more optimistic about their prospects.
"Really encouraging news," said Howard Archer, chief U.K. and
European economist at IHS Global Insight, in a note. "It is not
just that overall economic sentiment across the eurozone rose
markedly in March to a near four-year high, but also that major
gains were seen for consumers, all business sectors and in most
countries."
Spanish consumer prices dropped 0.7% in March, falling at a
slower pace than the 1.2% reported in February. It was also a
smaller decline than the 0.9% drop expected by economists.
Greek impasse: Greece's Syriza-led government on Friday
presented ideas on fresh proposals for economic overhauls, but so
far officials from the European Central Bank, the International
Monetary Fund and the EU aren't convinced the suggested reforms are
detailed enough
(http://www.marketwatch.com/story/greeces-reform-proposals-lack-the-detail-needed-officials-say-2015-03-30).
In February, Athens and the Eurogroup of finance ministers agreed
to a four-month extension to Greece's bailout program, but the
fiscally strapped country won't receive the much-needed aid until
the two sides agree on a range of reforms.
With debt payments due over the next few weeks, the country will
run out of money in April, unless the next portion of bailout cash
is released, economists have suggested. Fitch Ratings late Friday
downgraded Greece's sovereign-debt rating to "CCC" from "B," citing
"uncertain prospects of timely disbursement from official
institutions." Read: Eurozone return to crisis is biggest risk to
global economy: Fitch poll
(http://www.marketwatch.com/story/eurozone-return-to-crisis-is-biggest-risk-to-global-economy-fitch-poll-2015-03-30)
Greece and its lenders spent the weekend locked in talks and
continued to discuss the reform plans in Brussels on Monday.
Meanwhile, German Chancellor Angela Merkel spoke in Helsinki and
insisted Germany wants to keep Greece in the eurozone, but that the
reform program must "add up," according to reports
(http://uk.reuters.com/article/2015/03/30/eurozone-greece-germany-idUKB4N0RB01W20150330).
Greece's Athex Composite Index shook off the concerns and ended
0.5% higher at 772.71.
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