EUROPE MARKETS: Europe Stocks Rise As Investors Digest ECB Announcement
June 07 2019 - 8:08AM
Dow Jones News
By Emily Horton
European stocks ticked up on Friday, as investors digested
Thursday's interest rates announcement from the European Central
Bank's and eye up a possible resolution to the U.S. - Mexico
dispute over tariffs and immigration.
How did markets perform?
The Stoxx Europe 600 index climbed by 0.6% to 376.28 on Friday,
after remaining flat the previous day.
In Germany, the DAX (DAX) added 0.5% to 12,015.79, France's CAC
40 advanced 1% to 5,331.70 and Italy's FTSE MIB jumped by 0.6% to
20,295.39.
Meanwhile, the U.K.'s FTSE 100 moved up by 0.6% at 7,301.69,
after adding 0.55% on Thursday.
The pound rose to $1.2709 from $1.2692 the previous day. The
euro also edged down to $1.1262, after finishing at $1.1277 on
Thursday.
What's moving the markets?
Following on from firmer Asia-Pacific stocks, European markets
gained on the hopes that a deal between the U.S. and Mexico could
be struck before tariffs take effect next week.
Late on Thursday evening, the Mexican government offered to
deploy 6,000 National Guard officers to stop the inflow of migrants
from Central America to the U.S. in an attempt to prevent President
Donald Trump's tariff threat, Reuters reported
(https://www.reuters.com/article/us-usa-trade-mexico-nationalguard/mexico-offers-to-send-national-guard-to-southern-border-to-stem-migration-sources-idUSKCN1T72NY).
European investors were also encouraged by the European Central
Bank's decision on Thursday to leave interest rates unchanged
(http://www.marketwatch.com/story/european-central-bank-says-now-plans-to-leave-rates-on-hold-at-least-through-first-half-2020-2019-06-06)
and extend the period it expects rates to remain on hold through at
least the first half of 2020. Later today, investors will turn to
expected U.S. jobs data for more indications on the scale of
potential interest rate cuts in the world's biggest economy.
German industrial production fell more sharply
(http://www.marketwatch.com/story/german-industrial-production-falls-sharply-2019-06-07)than
expected in April, amid weak manufacturing orders and business
sentiment. The Bundesbank, Germany's central bank, lowered the
country's economy growth forecast
(http://www.marketwatch.com/story/bundesbank-cuts-german-growth-view-amid-slowdown-2019-06-07)
blaming the manufacturing downturn.
In the U.K., Prime Minister Theresa May will step down as leader
of the Conservative party on Friday, after failing three times to
get her Brexit agreement through Parliament. Meanwhile, in a
crucial by-election in the U.K. constituency of Peterborough, the
opposition Labour narrowly retained its parliamentary seat, fending
off threats from the increasingly popular Brexit Party.
Which stocks are active?
French drugmaker Sanofi SA. (SAN.FR) gained 5% on Friday, after
appointing Paul Hudson
(http://www.marketwatch.com/story/sanofi-ceo-retires-replaced-by-paul-hudson-2019-06-07),
a top executive from rival pharmaceutical giant Novartis AG
(NOVN.EB), as its chief executive. Hudson will replace the firms
current CEO Olivier Brandicourt.
The stock price of Danish biotech gaint Novozymes A/S Series B
(NZYM-B.KO) sank by 8%, after the firm reportedly
(https://www.cnbc.com/2019/06/07/european-markets-eye-us-jobs-report-and-trade-news.html)
downgraded its outlook.
(END) Dow Jones Newswires
June 07, 2019 07:53 ET (11:53 GMT)
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