EUROPE MARKETS: After Three Down Weeks, Europe Stocks Advance
19 Agosto 2019 - 07:04AM
Dow Jones News
By Steve Goldstein, MarketWatch
Europe stocks on Monday advanced, as government officials across
the globe discussed how the world economy could avoid a sharp
downturn.
After losing ground for three straight weeks, the Stoxx Europe
600 index increased 0.67% to 372.11, with the hard-hit banking
sector leading the advance.
The German DAX increased 0.78% to 11652.42, the U.K. FTSE 100
rose 0.72% to 7168.71 and the French CAC 40 rose 0.65% to
5335.50.
U.S. stock futures also were stronger.
What's happening
After a report from news magazine Spiegel, last week that
suggested Germany could deficit spend if it entered recession,
Finance Minister Olaf Scholz over the weekend said the country has
the strength to counter any economic crisis with "full force,"
according to a Reuters report. The yield on the benchmark 10-year
bund edged up to -0.64%.
Underscoring the space the European Central Bank still has to
loosen policy, Eurostat revised lower its estimate of inflation in
the euro area in July to 1% from 1.1%. That's the slowest annual
rate since Nov. 2016.
"An optimal policy mix would actually go beyond ECB easing, but
be paired with governments helping, too. But fiscal policy is
unlikely to come to a preventive rescue, or at least not very
swiftly," said economists from Bank of America Merrill Lynch, who
lowered their estimates of euro-area GDP by a tenth in 2019 and
two-tenths in 2020.
Meanwhile, two White House aides over the weekend gave upbeat
assessments of the global economy. In addition, President Donald
Trump said he would consider a request from Apple CEO Tim Cook to
consider the impact on U.S. tariffs.
Focus stocks
CYBG (CYBG.LN) shares rose 3.8% as UBS upgraded the Clydesdale
Bank and Virgin Money UK owner to buy from neutral, saying it's
underperformed the sector by 20% and U.K. banks by 15% since the
company gave its last update.
IMCD (IMCD.AE) extended losses from last week, falling 3.9%.
Deutsche Bank cut the Dutch food ingredient maker's target price
after what it called a "disappointing" print.
(END) Dow Jones Newswires
August 19, 2019 05:49 ET (09:49 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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