Vodafone gains with European telecoms sector

European equities markets were helped to gains by the news that pending sales of existing homes in the United States were up by 6.3 percent in December and by advances in the European telecommunications sector.

The FTSE 100 added 2.13 percent to 4,164.46 in London, while the FTSE 250 gained 1.3 percent to 6,130.77.

In the telecommunications sector, Vodafone (LSE: VOD; NYSE: VOD; FWB: VOD) kept pace with the European telecommunications sector and added 7.02 percent in London.

The Eurofirst 300 was up 1.84 percent to 791.61 while the IBEX added 1.56 percent to 8,361.9, the CAC-40 was 1.79 percent higher to 2,982.39 and the Dax gained 2.43 percent to 4,374.96.

Most markets in the Asia-Pacific region were higher as Australia and Japan both announced new measures aimed at reviving their economies, including a cut to 3.25 percent in Australia’s interest rate.

The Sydney Ordinaries added 0.16 percent to 3,449.1 and the S&P/ASX200 was up 0.32 percent to 3,508.7 in Australia, but in Japan the Nikkei 225 fell 0.62 percent to 7,825.51, the Topix index was down 0.52 percent to 773.79 and the Mothers market dropped 0.01 percent to 335.58.

Hong Kong’s Hang Seng was also lower as it fell 0.66 percent to 12,776.89.

Elsewhere in the sector, the Straits Times Index was up 0.39 percent to 1,711.92, the Sensex added 0.91 percent to 9,149.3, the Kospi was 1.42 percent higher to 1,163.2, the Shanghai Composite gained 2.44 percent to 2,060.81 and the Taiex added 2.65 percent to 4,372.81.

Wall Street was mixed in early afternoon trade, with the Dow Jones Industrial Average up 0.48 percent and the S&P 500 had added 0.3 percent to 827.89 but the Nasdaq Composite had dropped 0.06 percent to 1,493.5.

Crude oil prices and base metals saw gains but precious metals and grains were lower.

The pound weakened on a contraction of the UK construction sector and on continuing speculation that the Bank of England will cut interest rates to 1 percent later in the week.

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