WSJ: Banks, Commodities Firms Lead European Stocks Higher
By ANDREA TRYPHONIDES
European stocks were higher on the first trading day of 2010, with banks and commodities firms leading gainers, following a more buoyant session for Asian equities and after crude oil managed to hit the $80 per barrel mark.
The U.K. FTSE 100 was 0.6% higher at 5444.62, Germany's DAX Xetra rose 0.8% to 6004.88 and France's CAC-40 index gained 0.9% to 3972.08.
Among banks, Royal Bank of Scotland Group rose 4.3% in London, Deutsche Bank advanced 1.5% in Frankfurt and Société Générale gained 1.5% in Paris.
Commodities stocks were led by Cairn Energy, up 4.6% in London, and Total, up 1.2% in Paris.
On Thursday, the Dow Jones Industrial Average fell 1.1% to 10,428.1, although it rose 19% for the year, marking its best year on a percentage basis since 2003. The Standard Poor's 500 index slipped 1.0% to 1115.1 as all its sectors fell, with utilities seeing the biggest decline. The S&P 500 climbed 23% for the year. The technology-heavy Nasdaq Composite fell 1% to 2269.2. It surged 44% over the year.
Asian stock markets kicked off 2010 mostly on a positive note. Japan's Nikkei 225 gained 1.0%, Australia's S&P/ASX 200 was 0.1% higher and South Korea's Kospi Composite increased 0.8%. But Hong Kong's Hang Seng Index fell 0.1%.
In the foreign-exchange markets, the dollar was stronger against the euro and off its lows against the yen, with demand fueled by expectations that higher long-term U.S interest rates would encourage investors to purchase dollar-denominated assets.
Meanwhile, the dollar is likely to keep strengthening this week thanks to higher yields on U.S. Treasurys, which may rise further if Friday's nonfarm payrolls data for December come in stronger than expected, according to dealers. The dollar was trading at ¥93.18, up from ¥93.03 in New York Thursday and off its low at ¥92.70. The euro was trading at $1.4274, down from $1.4373.
Elsewhere, February Nymex crude oil futures were 55 cents higher at $79.91 per barrel, after nudging over the $80 per barrel mark for the first time since mid-November. Spot gold was at $1101.05 per troy ounce, up $2.40 from the New York close.
