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European Shares Rebound On Stimulus Hopes

stockmarkets jan02 16aug19 lt

European stocks rebounded on Friday as expectations grew of further stimulus by central banks.

The euro extended losses on the back of dovish remarks from ECB's Rehn flagging the need for a significant easing package in September to support the flagging euro zone economy.

China's state planner said it would roll out a plan to boost disposable income this year and in 2020.

As global growth falters amid simmering U.S.-China trade war, there is now talk of aggressive stimulus from all the major central banks.

The pan-European Stoxx 600 was up 0.9 percent at 368.43 after declining 0.3 percent in the previous session.

The German DAX was moving up 0.8 percent, France's CAC 40 index was rising 0.9 percent and the U.K.'s FTSE 100 was up 0.4 percent.

The opening of markets in London was delayed by nearly two hours due to a technical glitch.

Shares of semiconductor companies were rising after U.S. chipmaker Nvidia reported earnings and revenues that beat analysts' expectations.

Infineon Technologies rose around 2 percent, AMS soared 3.6 percent and STMicroelectronics advanced 1.4 percent.

freenet AG shares climbed 1.8 percent. The telecommunications and web content provider has decided to vote against the proposed capital increase of Sunrise in relation to the acquisition of UPC Switzerland.

Miners rebounded from recent losses on expectations that central banks worldwide will unleash some of the most aggressive monetary stimulus since the financial crisis a decade ago.

Aerospace and defense engineering company Ultra Electronics gained 0.8 percent after it won a contract worth up to $1 billion in partnership with U.S. manufacturing firm Sparton DeLeon Springs LLC.

Ted Baker shed 0.6 percent. The luxury clothing retail company said it reached a new product license agreement with Next Plc to accelerate the expansion of Ted Baker's childrenswear collections.

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