UKX FTSE 100 Index

By Dave Morris

European markets rose on hopes that the European Central Bank would announce investor-friendly stimulative policies Thursday amid prevailing economic weakness.

How are markets performing?

The Stoxx 600 moved up 0.6% to 376.4. On Wednesday it climbed 0.4%.

The U.K.'s FTSE 100 rose 0.6% to 7,261.1. It had edged up 0.1% Wednesday.

The pound inched up to $1.2690, after nudging 0.4% higher Wednesday.

In Germany, the DAX was 0.7% higher at 12,066.7, having also ticked 0.1% up on Wednesday.

France's CAC 40 was 0.6% higher at 5,324.2. It rose 0.5% Wednesday.

Italy's FTSE MIB bounced back 1% to 20,367, having fallen 0.4% Wednesday.

What's moving the markets?

German economic data ahead of the European Central Bank meeting Thursday reinforced the view that the ECB will loosen policy. While German factory orders (http://www.marketwatch.com/story/german-manufacturing-orders-rise-slightly-2019-06-06) for April beat economists' expectations, coming in at 0.3% month over month versus 0.1% expected, they were down from the previous month's 0.8% figure.

U.S. President Donald Trump tweeted an update on discussions in Washington, D.C. with representatives of the Mexican government, saying that "progress is being made, but not nearly enough". The U.S. will levy tariffs on Mexico starting Monday, barring a breakthrough.

Ratings agency Fitch downgraded Mexico to 'BBB' from 'BBB+' (http://www.marketwatch.com/story/mexico-sovereign-debt-rating-cut-one-notch-by-fitch-2019-06-06), citing state oil company Pemex's credit troubles as well as possible trade action by the U.S. The agency changed the outlook for Mexico from Negative to Stable.

The International Monetary Fund revised down its GDP expectations for China to 6.2% for 2019 and 6% for 2020, reflecting the potential impact of trade tensions with the U.S. Managing Director Christine Lagarde told Reuters (https://www.reuters.com/article/us-g20-japan-imf-lagarde/imfs-lagarde-says-tariff-actions-dont-pose-global-recession-threat-idUSKCN1T62Y2?il=0) that the international body's base case was that tariffs might dampen growth but would not tip the global economy into recession.

Which stocks are active?

Fiat Chrysler Automobiles NV (https://www.wsj.com/articles/fiat-chrysler-withdraws-merger-offer-for-renault-11559773129)(FCA.MI) withdrew its merger proposal from Renault SA (RNO.FR) citing a lack of backing from the French government. WSJ sources said the sticking point was that Nissan, Renault's partner in a long-term alliance, had not yet given its backing. Renault sank 7.3%, while Fiat Chrysler edged down 0.3%.

Rolls-Royce Holdings PLC (RR.LN) shares moved 2% higher on news its pensions unit had struck a GBP4.6 annuity deal with Legal & General Group PLC (LGEN.LN), the insurance company.

Entertainment One Ltd. (ETO.LN) rebounded 15.1% after issuing a statement refuting a Variety article saying Mark Gordon, President and Chief Content Officer of EOne's film and TV unit, was in talks to exit his role. Shares had fallen 17% Wednesday after the initial Variety report.

(END) Dow Jones Newswires

June 06, 2019 07:14 ET (11:14 GMT)

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