European Stocks Jump as Investors Anticipate Hike in UK Interest Rates

By Investors Hub

European stocks are trading higher on Monday as U.S. rate hike fears ebbed and investors waited for the SPD vote to join a German coalition government with Angela Merkel. The euro has climbed ahead of ECB President Mario Draghi’s appearance in the European Parliament.

The pound has edged higher against the dollar after Bank of England Deputy Governor Dave Ramsden said in an interview with the Sunday Times that U.K. interest rates are likely to rise somewhat sooner rather than later, if wage growth improves.

Ramsden said he would keep a close eye on what happens through the early part of this year to see if a forecast of wage growth picking up to 3 percent is realized.

While the German DAX Index has risen by 0.4 percent, the French CAC 40 Index is up by 0.6 percent and the U.K.?s FTSE 100 Index is up by 0.7 percent.

Ericsson and Nokia have rallied after reports that the 5G rollout will likely take place a year ahead of schedule.

German automaker Volkswagen has also climbed after more than doubling its 2017 profit and reportedly settling a lawsuit over the company’s marketing of clean emissions vehicles.

Associated British Foods has also advanced. The British food processing and retail company has kept its outlook for the group unchanged, with progress expected in both adjusted operating profit and adjusted earnings per share.

Meanwhile, underwriter Hiscox has tumbled in London after its profit before tax slumped by more than 300 million pounds.