LONDON MARKETS: London Markets Boosted By Stimulus Talk
June 18 2019 - 6:41AM
Dow Jones News
By Dave Morris
London markets rose as European Central Bank President Mario
Draghi promised stimulus if economic conditions didn't improve.
How did markets perform?
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%.
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".
Conservative Party MPs are preparing to hold its second ballot
Tuesday to choose a replacement for U.K. 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.
Rolls-Royce Holdings PLC (RR.LN) announced it is buying Siemens
AG's (SIE.XE) electric aircraft technology business for an
undisclosed sum. Siemens' "eAircraft" business is developing
all-electric and hybrid electric technology for use in the
aerospace industry. Rolls-Royce shares advanced 0.9%.
(END) Dow Jones Newswires
June 18, 2019 06:26 ET (10:26 GMT)
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