ZCZC
BCN-09
STOCKS-EUROPE-MARKETS
European equities rise, euro dips
LONDON, July 27, 2019 (BSS/AFP) – Europe’s stock markets rebounded Friday
on bargain-hunting and the euro slid as dealers dwelled once more on the
European Central Bank’s interest rate outlook.
Meanwhile, US open stocks opened higher as data on second quarter growth
beat expectations.
In afternoon trading Frankfurt stocks won 0.3 percent and Paris added 0.5
percent, while London rose 0.6 percent in value.
“Stocks in Europe are a little higher today in the wake of the major sell-
off yesterday,” said CMC Markets analyst David Madden.
“Ahead of the ECB meeting, traders were expecting a dovish update, and
when a mixed report was released, it triggered a wave of selling, and today
we are seeing some bargain hunting.”
The European single currency had briefly sunk on Thursday to $1.1102 —
the lowest level since May 2017 — after the ECB signalled it could undertake
new stimulus measures and cut rates to boost flagging growth and inflation in
Europe.
But it then snapped higher afer ECB President Mario Draghi left some
traders feeling disappointed by the lack of any immediate action.
“The killer blow came from Mario Draghi on Thursday who wasn’t his usual
dovish self — or more accurately, (he) failed to live up to the high level
of expectation that the market has set,” said Oanda analyst Craig Erlam.
“I fear this is going to be a recurring theme as central banks try to
appease markets while at the same time trying not to be pushed into easing at
a faster rate than they are comfortable with.”
The euro resumed sliding in Friday trade, while it stayed considerably
above $1.1102.
MORE/HR/0928
ZCZC
BCN-10
STOCKS-EUROPE-MARKETS 2 LAST LONDON
– US consumers spend –
Wall Street shrugged off data that showed the US economy slowed sharply in
the second quarter, with Google parent Alphabet, Starbucks and Intel posting
good earnings reports after trading ended on Thursday.
Data showed the US economy growing at an annual rate of 2.1 percent,
compared to the 3.1 percent it grew at in the first quarter. Moreover 2018
GDP growth was revised down to 2.5 percent.
But the second quarter growth was higher than forecast by many economists,
and Briefing.com analyst Patrick O’Hare pointed to strong consumer spending,
with personal consumption expenditures rising by 4.3 percent.
“The key takeaway from the report is that it revealed some impressive
strength in the U.S. consumer,” he said, adding this type of data could lead
one member of the US Federal Reserve to dissent on cutting interest rates
when it meets next week.
“That point notwithstanding, it won’t deter the Fed from cutting the
target range for the fed funds rate by 25 basis points, but it may very well
have taken the prospect of a 50-basis points cut off the table,” said O’Hare.
The Dow rose 0.1 percent at the opening bell, with the broader S&P 500 and
tech-heavy NASDAQ indices both posting bigger gains.
American stocks have struck record highs in recent weeks on expectations
that the Federal Reserve will cut interest rates next week.
But strong American economic data, including Thursday’s report showing an
increase in durable goods sales in June, had investors fearing a less dovish
Fed announcement and led to a dip
BSS/AFP/HR/0930