European markets gave a strong thumbs up to the EU’s debt breakthrough last night. Wall Street followed suit when the New York exchanges opened.
There were strong gains on most markets and the index of Europe’s top stocks was up six percent in mid-afternoon. Banks and insurance companies led the way.
Also helping investor sentiment US economic growth was up by 2.5 percent in the third quarter. American consumers and businesses seemed to set aside fears about the recovery and stepped up spending. And new US claims for unemployment benefits also fell modestly last week.
The euro rose above $1.41 cents for the first time since the start of September. Crude oil gained close to three percent and metals prices rallied.
The news of the bargain in Brussels was well received before the sun set in the east, too, where Asian markets were all in the green, best being Hong Kong at close to three percent up, and Tokyo two.