Europe close: Stocks end higher after upbeat data in Germany, UK and US
European stocks gained after data showed German business confidence and UK retail sales grew while US jobless claims fell.
Ifo’s index on German business sentiment rose to 105.5 in December from 104.7 a month earlier, as expected.
“December’s German Ifo survey provides some comfort that recent overseas events have not yet hit the economy, but remains consistent with only weak rates of expansion,” Capital Economics said.
UK retail sales rose 6.9% year-on-year in November after a 4.6% increase in October, more than the 4.5% predicted by analysts.
US jobless claims decreased by 6,000 to 289,000 in the week ended 13 December, the fewest since early November, the Labor Department said.
Analysts had been expecting 295,000 claims. Jobless claims have been below 300,000 for 13 of the past 14 weeks.
The Federal Reserve on Wednesday said the labour market had improved but it will be "patient" on the timing of the first interest-rate rate increase.
Separately, the US services purchasing managers’ index (PMI) reading came in at 53.6 this month, a decrease from 56.2 the month before. Readings above 50 indicate expansion while those below that mark suggest a contraction. Analysts had expected growth to pick up slightly to 56.3
Swiss central bank takes deposit rate negative
Switzerland’s Novartis AG and Roche Holding AG advanced after the nation’s central bank introduced a negative deposit rate.
The Swiss National Bank said that it took the action “with the aim of taking the three-month Libor into negative territory, expanding its target range for to its usual width of one percentage point at -0.75% to 0.25%”.
Alcatel-Lucent SA rallied after a Manager Magazin report that Nokia Oyj resumed merger talks with the French company.
Swisscom AG declined after French billionaire Xavier Niel’s private holding company agreed to buy Orange Switzerland.
Aveva Group dropped after JPMorgan Chase & Co. and Morgan Stanley lowered their rating on the UK software maker.
The euro fell 0.44% to $1.2288.
Brent crude dropped 1.7% to $60.15 per barrel, according to the ICE, after falling to around $59 on Wednesday.