EUROPE MARKETS: European Stocks Lifted By Encouraging Economic Data

By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- European stocks climbed Thursday, hanging firmly to seven-year highs, following economic data that appeared encouraging for the eurozone's recovery prospects.

The Stoxx Europe 600 gained 1% to 390.69, marking its best finish since June 2007, FactSet data showed, as the consumer goods, basic materials and telecom sectors advanced.

Germany's DAX 30 swung out of the red and ended up 1% at 11,327.19, the 18th record closing high this year. The move came after data showed a number of jobless people in Germany in February declined by a seasonally adjusted 20,000, less than the drop of 10,000 that had been expected by analysts polled by The Wall Street Journal.

"Falling oil prices and low inflation have certainly aided the economic engine of the eurozone," said Naeem Aslam, chief market analyst at AvaTrade, in a note. The German data is also "good news for [European Central Bank President Mario] Draghi, who has already confirmed that he sees the signs of confidence bouncing back in the eurozone."

European stocks also found support from European Central Bank data showed lending to the private sector (http://www.marketwatch.com/story/eurozone-recovery-hopes-buoyed-by-jobless-data-2015-02-26) fell by just 0.1% in January, following a decline of 0.5% in December.

"On top of this, the GfK German Consumer Climate index edged higher to 9.7 in February from 9.3 previously. If this trend of improving data continues then we could see further gains in the European stock markets," wrote Fawad Razaqzada, technical analyst, at Forex.com.

France's CAC 40 moved higher by 0.6% to 4,910.62, and Spain's IBEX 35 jumped 0.8% to 11,139.50 after Spanish fourth-quarter gross domestic product growth was confirmed at 0.7%.

The FTSE 100 ended up 0.2% at 6,949.73 (http://www.marketwatch.com/story/standard-chartered-gains-topping-ftse-100-2015-02-26), notching a record closing high. It was two days ago that the blue-chip index marked its best close since December 1999. The U.K.'s fourth-quarter gross domestic product growth of 0.5% was confirmed by the Office for National Statistics.

Russia's Micex tacked on 0.8% at 1,760.66, but Greece's Athex Composite fell 2% to 904.59.

Among movers, Standard Chartered PLC shares surged 5.4%, with the strongest gain since August 2012 coming after the Asia-focused lender said CEO Peter Sands will step down (http://www.marketwatch.com/story/standard-chartered-names-bill-winters-next-ceo-as-it-shakes-up-top-brass-2015-02-26) in June. He will be succeeded by Bill Winters, who once served as the co-CEO of J.P. Morgan Investment Bank.

Shares of Reed Elsevier PLC dropped 4.8% after the publishing and exhibitions company posted a fall in full-year net profit and revenue (http://www.marketwatch.com/story/reed-elsevier-full-year-profit-falls-2015-02-26-2485424).

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