European stock markets rose Thursday on solid economic data from the United States as traders digested rate decisions from the Bank of England and the European Central Bank. Dealers also tracked developments in Saint Petersburg, Russia where a G20 summit about the world economy was being overshadowed by rifts over a US plan to intervene in Syria. At close, London's FTSE 100 index rose 0.89 percent to 6,532.44 points, Frankfurt's DAX 30 firmed 0.48 percent to 8,234.98 points and the CAC 40 in Paris climbed 0.66 percent to 4,006.80 points. The market is "on a solid trend where we have the feeling geopolitics has become a bit less scary," said Renaud Murail of Barclays Bourse. Fresh data meanwhile "confirms the US economy is improving," he said. The European single currency slid to $1.3116 from $1.3207 late on Wednesday. At the G20 summit, US President Barack Obama was expected to strive to bridge deep divisions over his push for military action against the Syrian regime over its alleged use of chemical weapons. The Syria crisis threatens to completely overshadow leaders' efforts to promote a crucial economic agenda of stimulating growth and cracking down on tax avoidance. The effects of US monetary policy on emerging markets is also a top issue at the summit. Mid-session on Thursday, the European Central Bank as expected held its key rates unchanged in the belief that a nascent recovery in the crisis-stricken euro area remains extremely vulnerable to setbacks. "I am very, very cautious about recovery. I can't share the enthusiasm," ECB president Mario Draghi told a news conference. This is in contrast to markets that have been sending bond rates higher in anticipation that central banks will be less accommodating as the economy improves, but Draghi tried to dampen these expectations. While the ECB upgraded its growth and inflation forecasts for the 17-country euro area this year, it trimmed them slightly for next year. Draghi said that the central bank saw the eurozone economy shrinking by 0.4 percent this year and then growing by 1.0 percent next year. The Bank of England meanwhile maintained its key lending rate at a record low 0.50 percent and said the amount of quantitative easing (QE) stimulus would remain at £375 billion ($586 billion, 444 billion euros). -- Telecom Italia jumps on stake-taking talk -- In company news, in Milan, where the FTSE Mib of leading shares gained 0.78 percent, Telecom Italia skyrocketed by 8.39 percent to 0.607 euros on rumours that global telecom players were circling to take a share in the company. In Paris, French automaker PSA Peugeot Citroen jumped 5.39 percent to 11.24 euros and Renault 5.81 percent to 56.50 euros after PSA chairman Philippe Varin said France's beleaguered auto market was on the mend. In German, BMW gained 6.03 percent to 76.97 euros on excellent sales figures in the US. US stocks also rose Thursday with the Dow Jones Industrial Average up 0.10 in midday trade, the broad-based S&P 500 adding 0.19 percent and the tech-rich Nasdaq climbing 0.24 percent. Just before the US open, the US Labor Department said initial claims for unemployment insurance came in 323,000, a decline of 9,000 from the prior week, a good sign for the jobs market. The report comes one day before the crucial monthly non-farm payroll and unemployment report. Asian stock markets mostly rose on Thursday, but gains were capped by profit-taking and lingering concerns over Syria. The dollar pushed back above 100 yen after the Bank of Japan left its monetary policy unchanged, and following the US Fed's bright outlook. The US unit rallied to 100.17 yen, which was the highest level since July 25 and compared with 99.73 yen late on Wednesday, but it later pulled back to 100.11 yen. And on the London Bullion Market, gold prices eased to $1,385 an ounce from $1,390. Sterling was dipped against the euro at 84.12 pence and the dollar at $1.5591. On the bond markets, Germany's 10-year borrowing rate nosed above two percent for the first time since March 2012, as anticipation grew that stimulus measures from key central banks will slow. The yield on German benchmark bonds rose to 2.042 percent on the secondary markets. In May, the rate was at an all time low of 1.15 percent.
GMT 11:02 2018 Tuesday ,11 December
ASE opens trading on lower noteGMT 15:40 2018 Monday ,10 December
Amman stock market closes trading at JD4.4 millionGMT 19:10 2018 Wednesday ,05 December
Index at Palestine stock market drops by less than one pointGMT 17:58 2018 Sunday ,25 November
Amman stock market wraps up trading at JD2.6 millionGMT 14:24 2018 Thursday ,22 November
Russia’s stock market demonstrates record-breaking figures in 2018GMT 11:45 2018 Tuesday ,20 November
Tokyo stocks close lower as tech issues weigh, Nissan tumblesGMT 15:08 2018 Monday ,19 November
Amman stock market wraps up trading at JD6.1 millionGMT 15:51 2018 Sunday ,18 November
U.S. stocks post weekly losses amid tech shares routMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor