Rising signs of improvement in economy became more vivid as European consumer prices reported increase in November after seven months of consecutive decline. The European Union statistics office in Luxembourg maintained that there was a 0.6 percent increase in prices in October against 0.1 per cent decline in October last year.

European Central Bank’s assurance to continue with the stimulus package and strength of the euro-area economy did well to raise the confidence level of investors. Oil prices too rose 9 per cent during the period and companies continued their efforts for increasing their earnings through cost cutting measures.

Martin van Vliet, a senior economist at ING Bank in Amsterdam said, “ECB is likely to adopt a very gradual approach to withdrawing its emergency liquidity measures, and to keep interest rates on hold for an extended period.”

The euro performed well against dollar reporting an increase of 0.4 percent at 10:52 a.m. in London.

Meanwhile, European unemployment rose to 9.8 percent in October and there were no fresh hiring plans by companies at this point of time due to patchy economic recovery.

Howard Archer, Chief European Economist at IHS Global Insight said, “Economic activity is unlikely to be strong enough to generate significant inflationary pressures for some considerable time to come.”