China growth lifts stocks from euro zone shadows
LONDON: Signs of robust economic growth in China helped lift world stocks on Wednesday while the euro halted its recent slide with investors looking for the next move by policymakers to tackle the euro zone's debt crisis.
Better-than-expected Chinese factory data in November, with the official Chinese purchasing managers' index (PMI) rising to a sevenmonth high of 55.2, showed health in one of the world's largest economic engine, lifting sentiment.
European shares rose nearly 1 percent and Japan was half a percent higher. But serious concerns remained about the pressure on euro zone debt and the methods by which it might be eased.
On European bond markets themselves, demand for German debt fell ahead of a five-year bond sale, although yield spreads with peripherals such as Spain were slightly tighter. Debt-ridden Portugal will issue 500 million euros in 12-month T-bills and is likely to pay a new record premium since the introduction of the euro in a fresh sign of market pressure to follow Ireland and Greece to seek a bailout.
Standard & Poor's warning on Tuesday that it could cut Portugal's credit ratings if growth prospects weakened further was having little impact. The agency also said it could act if private creditors become subordinated to public creditors in a possible aid program. -Reuters