European Stock Steam Ahead

By Tommy Stubbington 

        European stocks climbed further into record territory on Friday as the market's big rally in 2015 showed no sign of abating.
        The Stoxx Europe 600 was 0.4% higher in early trading, having closed at an all-time high on Thursday. A recent spate of corporate mergers has injected further confidence into a buoyant market, while Thursday's repayment by Greece of its latest installment owed to the International Monetary Fund eased worries that Athens might spark a fresh confrontation with creditors.
        In the background, the European Central Bank continues to pump EUR60 billion a month into debt markets under its stimulus program, driving down yields and pushing investors into equities in search of better returns.
        "Equities remain the asset class of choice as long as central banks continue to provide the liquidity support," said Ian Williams, economist and strategist at brokerage Peel Hunt.
        Germany's DAX index was 0.6% higher, France's CAC 40 rose 0.3%. Outside the eurozone, the U.K.'s FTSE 100 was up 0.3%.
        The ECB effect also continued to be felt in currency markets, with the euro slipping further against the dollar after Thursday's heavy decline. Lower yields in the eurozone diminish the currency's attractiveness to investors. The German 10-year yield was up slightly at 0.17% having hit a record low of 0.14% on Thursday. Those higher yields reflect slightly lower prices.
        At the same time, the dollar has bounced back from a recent soft patch after Wednesday's Federal Reserve minutes, which indicated that some officials still see a June interest-rate increase as a possibility.
        The single currency was 0.2% lower at $1.0645, and is down more than 2% against the dollar this week.
        "A period of weak U.S. data, a strong dollar--none of this currently seems to bother the [Fed] and distract it from its planned normalization of U.S. monetary policy. This is clearly what the market gathered from the last [Fed] minutes," said Commerzbank currency strategist Thu Lan Nguyen.
        In commodities markets, Brent crude oil was 0.3% higher at $57.85 a barrel. Gold edged 0.1% higher to $1,194.50 an ounce.
        Write to Tommy Stubbington at tommy.stubbington@wsj.com
        (END) Dow Jones Newswires

        April 10, 2015 03:54 ET (07:54 GMT)

#FX
#Forex
#EuropeanStock
#SteamAhead