Czech Stocks Rebound From 2 1/2 Year Low on Europe Bailout Plan
Czech shares jumped from the lowest in 2 1/2 years as optimism that Europe will contain its debt crisis and record Thanksgiving retail sales in America boosted investor demand for riskier assets worldwide.
The PX (PX) gauge jumped 1.9 percent, the most since Nov. 3, to 859.3 at its 4:28 p.m. close in Prague. Erste Group Bank AG (RBAG), an Austrian lender with a 13 percent weighting in the index, surged 8.9 percent, its best day since Oct. 6. Mining company New World Resources Plc jumped 4.4 percent, the most since Oct. 7.
Global stocks snapped a 10-day selloff and commodities rose as European leaders prepare to discuss plans to use rescue funds to insure bonds of debt-stricken countries with guarantees of 20 percent to 30 percent. Retail sales in the world’s largest economy during Thanksgiving climbed 16 percent to a record.
“Stock markets in western Europe started the week with a strong growth, fueled mainly by speculation about new steps to fight the debt crisis,” Josef Nemy, an analyst at Komercni Banka AS (KOMB) in Prague, wrote in a report today. “Positive news also came from the U.S., with unexpectedly strong Thanksgiving sales.”
To contact the reporter on this story: Krystof Chamonikolas in Prague at firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com