Sorry about that link Doug, Bloomberg moved the story.
This is it in a nutshell:
Bullish German outlook pulls bourses north
Nikkei, wary of yen, ekes out gain; Hong Kong lower
By Gareth Vaughan, Bill Clifford & Mariko Ando,
CBS MarketWatch
Last Update: 6:43 AM ET Oct 26, 1999 World indexes
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LONDON (CBS.MW) -- European bourses pulled out of the red mid-session Tuesday after Germany's six leading economic research institutes raised their forecast for growth in Germany -- Europe's biggest economy -- in 2000, based on the assumption that eurozone interest rates are not hiked this year.
In London, the FTSE 100 index added 28.70 points to 6,038.00. In Frankfurt, the Xetra DAX ascended 37.36 points to 5,357.75; while in Paris, the CAC 40 climbed 27.41 points to 4,696.69. See London's most active stocks, and for other bourses see world indexes.
In their twice yearly report which is used as the basis of government forecasts, the institutes raised their forecast for German growth in 2000 to 2.7 percent from 2.6 percent. They added that rising growth will boost the labor market, helping to slash unemployment by more than 200,000 next year.
The institutes said their forecast is based on the assumption that the European Central Bank (ECB) will raise the eurozone base interest rate to 3 percent from 2.5 percent in the first half of next year -- not this year as some analysts expect.
"The German economic research institute said they see no ECB rate hike this year (and) it's a big influential group," said one equity analyst at Deutsche Bank in London who spoke on condition of anonymity. |
