Second day of gains for European equities

Stock markets in Europe headed higher on Thursday June 11th, adding to yesterday’s move higher that culminated in their best day in more than a month. Mounting expectations of a coming interest rate rise remained the key driver, as it boosts global bond yields and the greenback.

Germany’s DAX climbed more than 0.8 per cent, the CAC 40 rose nearly 0.7 per cent and the Euro Stoxx 50 added around 0.7 per cent. Meanwhile, the FTSE-100 index saw some 0.4 per cent of gains. 

Meanwhile, the Greek debt negotiations march onward regardless of the flood of rumours that a deal may soon be reached. The seemingly neverending talks between Greek and European officials continue and the latest soundings suggest a deal may be reached next week. However, forgive us if we don’t hold our breath.

Greece’s economic woes deepened today, as official statistics showed the nation’s unemployment rate surged higher in the first quarter of 2015. The Greek jobless rate jumped to 26.6 per cent from 26.1 per cent in the previous quarter.

The report also showed that the number of people in work decreased by 0.9 per cent in the same period, while the unemployment total rose by 2.1 per cent. Delving deeper into the figures, analysts showed that the nation has a massive long-term unemployment problem, as approximately 72 per cent of the jobless citizens have been out of work for more than a year.

Despite this, Athen’s stock market surged by more than six per cent by midday as hopes of a deal between Greece and its creditors returned. 

Over in the US, investors await jobless claims and retail sales data later today. Expectations are that the two reports will further illustrate the health of the US economic recovery, which will give the Federal Reserve more ammunition to raise interest rates in September.

The US dollar rose on the positive mood, however, any disappointments in the data will surely send the greenback lower once again.