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Thursday, November 27, 2014

Europe Positive Headlines

A post here earlier this week  reviewed the positive possibilities for European stocks.

A series of positive news items from Europe today from Bloomberg

Economic sentimentin the euro area unexpectedly increased in November, a sign theEuropean Central Bank’s bid to boost growth and inflation is starting to hit home with companies and consumers.

German unemployment fell and the jobless rate reached a record low as businesses and investors become more confident that Europe’s largest economy will keep growing.

DAX Revival Draws Believers After 11 Days Without Decline
German stocks, up 16 percent since mid-October and rallying for 11 straight days, have further to run, according to the options market.
Contracts (DAX) that pay off shouldGermany’s benchmark DAX Index continue its advance cost the most since January relative to bearish ones, three-month data compiled by Bloomberg show. The German gauge has rallied 6.9 percent this month, almost twice as much as the Euro Stoxx 50 Index.
Investors have flocked to German stocks as they speculate theEuropean Central Bank will boost stimulus, further weakening the euro. Exports make up more than 80 percent of revenue for Siemens AG and Daimler AG, while Bayer AG and BASF SE get at least 44 percent of their sales outside Europe. The DAX also rallied as stronger-than-forecast data in Germany and the U.S. signaled an improving global economy.
“The best bang for buck in markets now are German blue-chip exporting companies with exposure to global growth,” said Lorne Baring, who helps oversee $500 million at B Capital SA in Geneva. “Global growth will be OK, and the ECB’s comments didn’t hurt. A weaker euro will help them.”

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