European stock markets closed sharply higher this evening as much better than expected US jobs figures helped ease concerns about the economic outlook. Traders also said worries over Greece's massive deficit and debt problems also appeared to ease after it successfully sold bonds to raise €5 billion.
In London, buoyant banks and commodity stocks pushed the FTSE up 1.3% to 5,600, its highest close since before the collapse of Lehman Brothers in September 2008. Advertiser WPP gained 3.5% to 645.5p after a more upbeat 2010 outlook. In Paris, the CAC jumped 2.1% to 3,910 and in Frankfurt, the DAX gained 1.4% to 5,877.
In Dublin, the ISEQ closed up 46 points (1.6%) to 3,011 on the back of surging banking shares. AIB jumped more than 16% to €1.45 after gaining 20% yesterday as investors reacted well to the bank's plan to sell off some of its businesses. The other banks followed with Bank of Ireland up 10.8% to €1.21 and Irish Life and Permanent gaining almost 7% to €3.23.
On Wall Street, the Dow Jones was 0.8% higher at 10,530, while the Nasdaq was up 1.1% to 2,138 on the back of the employment report. Japanese shares closed higher this morning, with the Nikkei up 2.2% to close at 10,369 as sentiment was lifted by a lower yen. Hong Kong's Hang Seng index closed 1% higher at 20,788.
