FXS: European markets open with gains with Portuguese debt action on focus
FXstreet.com (Barcelona) - European markets are going through sharp advances on early trade Wednesday, ahead of a key debt auction by Portugal, with German GDP accelerating at its fastest pace in the last 20 years.
Eurostoxx 50 Index rises 1.7% while the German Dax and the French CAC Indexes trade 1.2% higher each less than two hours after the opening. In the UK the FTSE Index adds 0.5%.
Investors remain confident ahead of a key auction of Portuguese debt, scheduled at 10.30 GMT, which is likely to determine debt issuances by Italy and Spain Tomorrow.
Furthermore, German GDP grew at a 3.6% pace over the 2010 year, after a 4.7% decline in the previous year, showing the largest economic growth since the reunification, and stressing the picture of two-speed recovery in the Euro Area.
Euro recovery extends
EUR/USD recovery from 1.2860/70 low on Monday has extended above 1.3000 as debt fears ease, reaching 1.3045 session high. EUR/JPY has bounced up from 107.85 to regain most of the grounfd lost in Asia, approaching day high at 108.35. while EUR/CHF remains consolidating above 126.50 after having rallied from 124.30 low on Monday.
GBP/USD recovey from 1.5405 low on Friday extended yesterday above 1.5600, and the pair has reached 1.5680 high on early London session.
