Stocks are up in Europe, with the FTSE 100 slightly in the green and the MSCI All Country World Index up a third of a percent as the market reverses its attitude towards Greece thanks to progress on a bailout plan with creditors. Investors may also be looking to reverse bearish moves in European markets earlier this week, as hope replaces gloom, prompting BlackRock mogul Larry Fink to encourage investors to go one hundred percent into equities.
Stocks may also be up thanks to last afternoon’s revelation that consumer credit rose by $19.3 billion in December, a surprising reverse of the deleveraging trend that had suggested that consumer consumption would remain sluggish as unemployment stayed high and wages stagnated in America. Analysts had expected an increase of around $7.7 billion, so the results are more than double expectations. The greater use of credit may hint at greater consumer confidence, which should translate into higher spending and a recovery to the retail and financial sectors.
Revolving credit rose by $2.76 billion in a sign that consumers were more willing to use credit cards to fund their holiday shopping. The news comes after some credit companies reported lower charge-off rates in recent months.
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