Thursday, Nov 27, 2008
Global stocks rose to their highest level in nearly two weeks on Thursday with European equities buoyed by sharp gains in Asia and the United States, dampening demand for safer assets such as government debt.
Renewed expectations that Washington will bail out the U.S. motor industry and China’s aggressive interest rate cut on Wednesday helped to lift some of the gloom surrounding the global economy.
But a string of dismal U.S. economic reports this week left the dollar on a shaky footing while political risk emerged after attacks in India’s financial capital.
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At least 101 people have been killed with hundreds more trapped by Islamist gunmen in Mumbai after attacks on luxury hotels, hospitals and a tourist cafe.
Still, with U.S. financial markets closed on Thursday for the Thanksgiving holiday, analysts expect trading in Europe to be lackluster. While stocks were eking out gains, analysts said the outlook was still bleak.
“It’s going to be a bit of a nothing day, as we wait for Black Friday in the United States — the day where all retailers go from red to black,” said Justin Urquhart Stewart, investment director at Seven Investment Management. “If it goes like the UK, it could be a black Friday in the wrong sense.”
The day after Thanksgiving, known as black Friday, is traditionally the busiest time for U.S. retailers and investors would undoubtedly be on the lookout for retail sales figures.
This article was posted: Thursday, November 27, 2008 at 5:57 am