European stocks resumed their growth, approaching the six-month highs, helped by positive data on Germany and corporate news.
The research results, published by the Ifo Institute, showed that in July, business sentiment in Germany deteriorated less than expected, indicating the economy’s resilience to the impacts of Brexit. According to the data, the business climate index fell to 108.3 points from 108.7 points in June. Analysts had forecast a drop to 107.5. The index of business expectations dropped to 102.2 vs. 103.1 in June, while the current conditions index rose to 114.7 from 114.6, both better than forecasts.
Support fpr indices also have tje G20 meeting outcome. Finance ministers and heads of central banks of the G20 expressed their determination on the issue of strengthening economic growth. “We are taking measures to build confidence and support growth. In light of recent events, we reaffirm our determination to use all policy tools – monetary, fiscal and structural – individually and collectively to achieve our goal – to ensure strong, sustainable and balanced growth.”.
At the same time, investors are cautious on the eve of US and Japan events this week, the central bank meetings. Despite the fact that the recent strong US data increases the likelihood of the Fed raising rates, it is unlikely to happen at the July meeting. According to a Reuters survey results, just over half of the 100 economists expect the Fed to raise rates in the 4th quarter to 0.50-0.75 percent to 0.25-0.50 percent currently. The change is likely to occur in December. With regard to the meeting of the Central Bank of Japan, Bloomberg’s survey revealed that 78% of respondents belive that is likely the Central Bank decides to increase ETF purchases. Also not ruled out further reduction in interest rates and an increase in government bond purchases
The composite index of Europe’s largest enterprises Stoxx 600 is trading with an increase of 0.6 percent.
William Hill Plc Quotes jumped 6.1 percent amid reports that 888 Holdings Plc and The Rank Group are considering a joint takeover bid for the bookmaker.
Cost of Ericsson AB increased by 3.2 percent, as the Chief Executive Officer has resigned after more than six years in the company’s management.
SEB SA Shares rose 6.5 percent after the company said it is seeking to increase its operating result from activity by more than 10 percent.
Share price of Baer Group Ltd. rose 4% after the profit growth in the first half of the year exceeded expectations.
The cost of Air France-KLM Group fell 2.6 percent after Societe Generale SA analysts advised selling shares of the airline.
At the moment:
FTSE 100 +8.51 6738.99 + 0.13%
DAX +89.72 10237.18 + 0.88%
CAC 40 +30.42 4411.52 + 0.69%
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