EUROPE MARKETS: Europe Markets Jump On Draghi Stimulus Promise
June 18 2019 - 6:24AM
Dow Jones News
By Dave Morris
European markets shot higher as European Central Bank President
Mario Draghi promised stimulus if economic conditions didn't
improve.
How did markets perform?
The Stoxx 600 leapt 0.7% to 381.3 after falling 0.1% Monday.
The U.K.'s FTSE 100 was up 0.5% at 7,395.5. On Monday it dipped
0.2%.
The pound fell by 0.2% to $1.2525, after declining Monday by
0.4%.
In Germany, the DAX popped 0.8% to 12,183.1, following Monday's
close down 0.1%.
France's CAC 40 climbed 1% to 5,445.1, adding to its increase of
0.4% Monday.
Italy's FTSE MIB surged 1% to 20,834.5, up 0.1% from Monday's
close.
Following a dovish speech by ECB President Draghi, the euro
dropped 0.3% against the U.S. dollar, falling to $1.1187.
What's moving the markets?
Markets reacted to a speech in Portugal by ECB President Draghi
(http://www.marketwatch.com/story/euro-drops-global-equities-rise-as-ecbs-draghi-hits-of-more-stimulus-2019-06-18),
who said that if the region's economy slows and the Bank's
inflation target is threatened, "additional stimulus will be
required". He cited the threat of protectionism as one of the key
factors weighing on exports, particularly manufacturing, and said
that the bank's asset purchase program "still has considerable
headroom".
U.S. President Donald Trump is deploying 1,000 additional U.S.
troops to the Middle East
(http://www.marketwatch.com/story/us-to-send-another-1000-troops-to-middle-east-to-counter-iran-threat-2019-06-17)
amid tensions with Iran. The order follows an incident around
alleged attacks on oil tankers near the Strait of Hormuz, which
U.S. officials have attributed to Iran. Although investors
typically bid up the oil price at times of conflict in the region,
oil reacted only minimally on Tuesday.
In the U.K., Conservative Party MPs are preparing to hold its
second ballot Tuesday to choose a replacement for Prime Minister
Theresa May. Boris Johnson remains the front-runner, which was
cited as the reason
(http://www.marketwatch.com/story/brexit-brief-prospect-of-no-deal-brexit-sends-pound-to-nearly-six-month-low-2019-06-18)
the pound slumped against the U.S. dollar.
Which stocks are active?
Ashtead Group PLC (AHT.LN) shares climbed 2.8% after the
industrial equipment rental firm reported strong fourth quarter
fiscal 2019 earnings. Pretax profit was GBP208.6 million, up from
GBP174.7 million in the fourth quarter of fiscal 2018. The company
attributed the rise to organic growth in rentals, and predicted
continuing strength in North American markets.
Siltronic AG (WAF.XE) cut its outlook for 2019, anticipating
lower sales by a figure of between 10% and 15%. The German silicon
wafer company cited the tariffs battle between the U.S. and China
as a factor, which has hurt semiconductor companies elsewhere in
Europe. Siltronic shares plunged 12.8%, as did other companies in
the sector such as AMS AG (AMS.EB), which was down 4.6%, and
STMicroelectronics NV (STM.FR), which sank 2.4%.
(END) Dow Jones Newswires
June 18, 2019 06:09 ET (10:09 GMT)
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