Market Buzz: Worldwide optimism over Europe

Equities are likely to see gains with investor sentiment improving after Germany’s pledge to support the Eurozone recovery plan.

Russian markets posted increases Thursday amid the positive news from Europe. The MICEX and the RTS both added 0.25%.European markets inched higher in a light volume session Thursday, lifted by banking shares. The Stoxx Europe 600 closed 0.3% higher. The Spanish IBEX 35 surged 4.1%, and bond yields dropped following reports the country may draw on emergency bank aid.US stocks rallied Thursday after German Chancellor Angela Merkel said during a trip to Canada that Germany was committed to saving the Euro, as well as a report by the Commerce Department that building permits in July were issued at their highest rate since August 2008. The Dow Jones added 0.65%, the Nasdaq Composite gained 1% and the S&P 500 rose 0.7%.Most Asian markets rose Friday following Merkel's statement. Japan’s Nikkei climbed 0.9% and Australia’s S&P/ASX 200 grew 0.8%. Hong Kong’s Hang Seng rose 0.5% and the Shanghai inched up 0.1%. South Korea’s Kopsi lost 0.7% amid concerns over Samsung Electronics' dispute with Apple.