Skip to main content

European shares post best day since June 2016

European shares posted their biggest daily gain since June 2016 as buoyant U.S. job data and hopes of better Sino/U.S. trade relations boosted shares after a gloomy week during which a rare revenue warning from Apple caused havoc.
Federal Reserve Chairman Jerome Powell also reassured investors concerned about a U.S. economic slowdown, saying the central bank would be sensitive to the downside risks currently priced in the market.
Europe’s STOXX 600 rose 2.8 percent, with strong gains across the region’s bourses.
“A solid set of job numbers and some comfortable words from the chairman of the Federal Reserve have been just the ticket to get markets into bullish mode”, said IG analyst Chris Beauchamp.
Stocks sensitive to trade tensions led the gains.
Mining companies .SXPP jumped 5.4 percent, the top gainer as copper prices recovered on news of new trade talks between China and the United States.
Autos .SXAP, which suffered in 2018 from the trade dispute, jumped 4.5 percent.
Oil stocks .SXEP also rallied close to 3 percent, getting a lift from rising oil prices and a survey showing China’s services sector expanded in December.
Outside trade-related moves, Bayer (BAYGn.DE) shares climbed 6.7 percent. A ruling by a U.S. judge could restrict evidence favoring the plaintiffs in lawsuits alleging Bayer’s glyphosate-based weed killer causes cancer.
Tech stocks .SX8P, which plunged 4 percent after Apple’s revenue warning, rose 2.85 percent.
Chipmaker AMS (AMS.S), which provides the facial recognition technology used in the latest iPhone, rose 4 percent - a modest recovery after Thursday’s 23 percent plunge.
ProsiebenSat 1 (PSMGn.DE) shares fell 3.4 percent after Morgan Stanley cut its price target on the stock, in a negative note on European TV highlighting rising competitive pressure from subscription video on demand platforms.
As the fourth-quarter results season approaches, analysts remain pessimistic about European earnings. They have cut earnings forecasts continuously since September 2018.
Edward Park, deputy chief investment officer at Brooks Macdonald, said he was slightly “overweight” on equities, expecting an economic slowdown but not a contraction.
“If we’re going to see moderate growth in 2019 but nothing too exciting, are market participants willing to be outside risk assets for that entire time?”

Labels:

Comments

Post a Comment

Popular posts from this blog

Trump trade war poses threat to eurozone economy, warns ECB boss Mario Draghi

Draghi flagged 'the threat of protectionism' but still ended the central bank's €2.6 trillion money printing stimulus programme. The boss of the European Central Bank, Mario Draghi, has warned that Donald Trump’s trade war is hurting the eurozone. Unveiling weaker growth forecasts in Frankfurt on Thursday, Mr Draghi flagged “the threat of protectionism”. “When we look at all these drivers of the recovery, yes, it is true, it is just weaker. It is just weaker and it’s not just one off, it has been weaker for a while,” he said. “The risks surrounding the euro area growth outlook can still be assessed as broadly balanced. However, the balance of risk is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility.” Nevertheless, the ECB also confirmed that this month will mark the end of its €2...
Post a Comment
Read more

This is what China is doing to avoid an economic slowdown.

People's Bank of China steps in to release 800bn yuan (£92bn) for new lending to households and businesses. China's central bank has relaxed the rules on how much capital the country's lenders must hold in cash reserves as it seeks to maintain growth. It is the fifth such time during the last year that the People's Bank of China (PBoC) has made such a move. The measure comes amid growing concerns about weakening demand from Chinese consumers and businesses. Apple shocked Wall Street when, on Wednesday evening, it said sales in its most recent quarter would be weaker than expected. It blamed a  drop in sales in China for the shortfall  and, specifically, the trade war between China and the United States instigated by President Donald Trump. Its warning sparked a sell-off in global stock markets already nervous about the possibility of a slowdown in the world's second-largest economy. China's economy is thought to have grown by just 6.5% in 201...
Post a Comment
Read more

Pelosi, Nielsen clashed during border-security meeting: 'I reject your facts,' House speaker said, according to report

"I reject your facts," House Speaker Nancy Pelosi, left, reportedly said to Homeland Security Secretary Kirstjen Nielsen during a border-security meeting this week. "These aren't my facts," Nielsen reportedly responded. "These are the facts." House Speaker Nancy Pelosi and Homeland Security Secretary Kirstjen Nielsen got into a tense confrontation this week, with the California Democrat interrupting Nielsen’s presentation on border security and illegal immigration, telling her “I reject your facts.” The clash between the top House Democrat and a key member of President Trump's Cabinet occurred during a Wednesday meeting in the White House amid the impasse over the government shutdown, with Trump standing firm and demanding $5 billion for the border wall. At one point during the meeting, according to the  Wall Street Journal , Pelosi interrupted Nielsen, who was citing statistics related to the border, including how many criminal illegal ...
Post a Comment
Read more