The German market is seeing moderate strength in afternoon trading on Monday, following firm cues from Asia/Pacific after G8 leaders said over the weekend that they want Greece to stay in the Eurozone. Sentiment was also influenced by some positive remarks about growth made by Chinese Premier Wen Jiabao.
Germany raised 2.910 billion euros from the sale of its Treasury discount paper, or Bubills, with 12 months maturity, Bundesbank said. The target set for the sale was 3 billion euros. The auction attracted bids totaling 6.170 billion euros.
The average yield on the 1-year debt fell to 0.0264 percent from 0.0743 percent in the previous sale on April 23. The bid-to-cover ratio, which indicates demand, dropped to 2.1 from 2.3.
Leaders of the G8 nations on Saturday said they support Greece remaining in the Eurozone, while welcoming the ongoing discussion in Europe on how to generate growth alongside a firm commitment on fiscal consolidation.
"We agree on the importance of a strong and cohesive Eurozone for global stability and recovery, and we affirm our interest in Greece remaining in the Eurozone while respecting its commitments," the leaders said in a statement after the conclusion of the Cap David Summit at Maryland in the U.S.
German Finance Minister Wolfgang Schaeuble and his French counterpart Pierre Moscovici are meeting in Berlin later today.
Chinese Premier Wen Jiabao reportedly stated that going forward the nation would give bigger priority to policies aimed at growth. The statement comes after a string of official data that indicated a slowdown in the world's second largest economy.
The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.02 percent, while the Stoxx Europe 50 index, which includes some major U.K. Companies, is gaining 0.18 percent.
The DAX index is currently advancing 0.82 percent.
Commerzbank is leading the gainers by adding 3 percent. Deutsche Bank is rising 0.2 percent.
BMW, MAN, Daimler and Volkswagen are making notable advances.
UBS raised ThyssenKrupp to "Neutral" from "Sell." The stock is up 2.3 percent.
Merck is up 2.1 percent after UBS raised the stock to "Buy" from "Neutral."
Kabel Deutschland is moderately higher after it agreed to acquire privately-held Tele Columbus GmbH for 603 million euros.
GSW Immobilien is rising 2 percent after reporting first-quarter results.
Henkel is declining 1.7 percent. RWE and E.ON are seeing weakness.
Elsewhere in Europe, the French CAC 40 is adding 0.50 percent and the UK's FTSE 100 is gaining 0.62 percent. Switzerland's SMI is climbing 0.36 percent.
Across Asia/Pacific, Australia's All Ordinaries added 0.62 percent, China's Shanghai Composite Index gained 0.16 percent and Japan's Nikkei 225 rose 0.26 percent. Hong Kong's Hang Seng, however, slipped 0.16 percent.
In the U.S., futures point to a higher open on Wall Street. In the previous session, the major averages all ended the day firmly in negative territory, at their worst closing levels in four months, as traders were reluctant to hold positions going into the weekend. The Dow fell 0.6 percent, the Nasdaq plunged 1.2 percent and the S&P 500 slid 0.7 percent.
In the commodity space, crude for June delivery is adding $0.32 to $91.80 per barrel while June gold is losing $0.6 to $1591.3 a troy ounce.
by RTT Staff Writer
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