Macroeconomic Data Aids European Shares Rebound
Rebounding banks helped European shares recover on Friday after data pointing to a potentially stronger recovery in global growth helped drive demand for equities.
The pan-European FTSEurofirst 300 Index provisionally closed up 13.17 points, or 1.2 percent, at 1,161.45.
A narrowing trade deficit in the United States and data overnight showing growing demand for Chinese exports nurtured hope that the global economy would strengthen. The European basic resources sector was boosted by the news.
Meanwhile, European Union leaders ended a bout of uncertainty by reaching an agreement on the bloc's long-term spending plans, after more than 24 hours of negotiations. The heads of the EU countries laid down the groundwork for 960 billion euros of spending on agriculture, aid and research for 2014-2020.
"The key drivers for the macro recovery in January and the subsequent equity rally appear to be holding and, as a result, we have seen a lot of the week's pullback eradicated," Adam Seagrave, equity Trader at Saxo Bank, said.