European Stocks Rise as Spain, France Sell Bonds; Commerzbank Shares Climb

European stocks gained for a fourth day, extending a five-month high for the Stoxx Europe 600 Index, as Spain and France sold bonds at lower yields and fewer Americans than forecast filed claims for jobless benefits.

Commercialism AG (CBK) led a rally in financial shares, surging 14 percent, after outlining measures to boost capital. Alston SA (ALO), the world’s third-largest power-equipment maker, jumped 13 percent after predicting “strong” orders in its fiscal fourth quarter.

Carefuller SA (CA), the biggest retailer in Europe by sales, dropped 1.6 percent after saying profit was at the lower end of its forecasts.

Oil Declines

Standard & Poor’s cut France and Austria one level to AA+ from AAA last week and said they face the risk of further reductions. Spain and Italy were also among nine nations downgraded, while Finland, the Netherlands and Luxembourg kept their AAA ratings and were put on negative watch.

Crude oil for February delivery declined 0.4 percent to $98.70 a barrel in New York on Jan. 13, the lowest settlement since Dec. 21, after two European Union officials said an embargo on Iranian crude imports may be postponed for six months. The contracts dropped 2.8 percent last week. Gulf Arab oil exporters, including the U.A.E. and Qatar, supply about a fifth of the world’s oil.

How Much Bull Can You Take?

Last week was another good one for the stock markets; KSE-100 index gained about 500 points. The bulls ran rampant. The trend which started mid-January continued. The index gained more than 1, 000 points overall straight away, without any correction. The index, which started rising mid-January, is now above 11, 500 points. TNA, people: Total Non-stop Action.