FTSE/DAX rallies 0.8% – IBEX woes continue on debt concerns
City Index November 25, 2010 9:21 PM
<p>The FTSE and DAX rallied 0.8% on Thursday, bulled by a strong mining and bank performance. However, the Spanish IBEX lagged the rest of Europe […]</p>
The FTSE and DAX rallied 0.8% on Thursday, bulled by a strong mining and bank performance. However, the Spanish IBEX lagged the rest of Europe as uncertainty continued over whether the debt laden country will be able to meet its debt obligations.
There was a strong surge in Indices towards the close but the move was more about low volumes than any significant beneficial news story or upsurge in risk appetite.
Property firm Capital Shopping Centres led the charge higher in the UK, after the property investor said that they had received a potential offer from US shareholder Simon Property. It shares were in high demand for much of the day, closing 13% higher. This in turn boosted the sector as a whole and Hammerson shares followed closely on CSC’s heels, rallying 5% in the process.
The day’s session has in truth been rather quiet with low volumes as the US celebrates Thanks Giving day. The FTSE closed higher by 0.8% and whilst this may give off the scent that traders were hunting stocks today, this could not be further from the truth with some heavy buy orders exacerbating moves higher due to the low volumes.
The IBEX continued to be hit hard as investor fears continued that having seen Ireland require a bail out, Spain may be next in line to fail to meet its debt obligations. The IBEX has fallen as much as 8% since the end of last week whilst bond spreads have widened considerably.
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