The key reason behind the growth of the European market on Thursday was the economic data released by the central bank of Germany, which represented better-than-expected results in the sector quarter.
According to the former forecast, the German economy was assumed to face a slowdown during the rest of the year; Deutsche Bundesbank raised its forecast to 3% from 1.9% and showed that 2010 could be a year of expansion.
The news reports carrying the Bundesbank story balanced out the markets and wiped out the previous concerns of the slowdown reported by the German magazine -Der Spiegel.
The Bundesbank's estimation lifted the euro to a high of $1.2861, in the European foreign exchanges. Recently, Euro was trading at $1.2850, down from $1.2859 in late New York trading on Wednesday.
Bundesbank’s August report turned round the investor’s mood, which helped promoting the market. Moreover, the report positively influenced the UK markets as the retail sales went up and the market atmosphere remained cheerful.
The Stoxx Europe 600 index rose 0.6% to 259.19; however, volumes were slim due to the holiday season and marked only 23% of its average 90-day volume by midday. London's FTSE 100 Index gained by 0.2% at 5313.22, Frankfurt's DAX added 0.5% to 6219.64 and Paris's CAC-40 Index rose to 0.7% to 3672.88.
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