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European Markets Recover Some Lost Ground

The European markets got off to a positive start Monday, after markets on Wall Street climbed at the end of the previous trading week. Rising commodity prices also helped to fuel the early gains across the pond. However, after the initial surge the markets settled into a sideways pattern for the rest of the session.

Investors remain in a cautious mood following the recent sharp pull back in global equity markets. Traders are unsure what to expect in the coming days, whether markets will rebound or continue to slide. Rising bond yields remain a concern for the equity markets.

The Bank of England is in no rush to hike rates and the rates will not go back to levels seen in the past, Chief Economist Andy Haldane said.

"We have a very strong eye on inflationary developments, and they're currently ahead of our target," Newcastle Chronicle newspaper reported him as saying.

"That's why we've raised rates once already." It seems likely that some further tightening of policy might be needed over the period ahead.

"We're in no rush, rates won't remotely go back to levels we've seen in the past, but nonetheless keeping the cost of living under control is, we think, the single best and most important thing we can do to help the economy generally and, within that, in particular those households who are feeling the pinch financially," Haldane said.

The pan-European Stoxx Europe 600 index advanced 1.17 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 1.28 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.17 percent.

The DAX of Germany climbed 1.45 percent and the CAC 40 of France rose 1.20 percent. The FTSE 100 of the U.K. gained 1.19 percent and the SMI of Switzerland finished higher by 1.61 percent.

In Paris, Renault rose 3.02 percent after a senior board member reportedly resigned from the company, days ahead of a meeting to consider Chief Executive Carlos Ghosn successor's appointment.

Airbus fell 1.22 percent on a Bloomberg report that it has halted all deliveries of its Pratt & Whitney-powered A320neo after the latest disclosure in a series of flaws with the next-generation engine.

In London, Saga climbed 3.58 percent. The tourism and insurance group for the over-50s has entered into a new quota share arrangement with NewRe and Hannover Re to cover 80 percent of the underwriting risk of motor policies of the Group's in-house underwriter.

Bookmaker Ladbrokes Coral gained 0.93 percent after reporting 4 percent increase in annual net revenue.

Akzo Nobel rose 1.92 percent in Amsterdam amid reports that PGGM has joined forces with a consortium led by a private equity firm to buy its chemicals division.

Heineken NV lost 2.03 percent after guiding for lower margin growth in 2018.

Novartis, which is facing a bribery probe in Greece, finished higher by 1.91 percent in Zurich.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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