European Equities Extend Gains on Easing Political Concerns
By Investors Hub
European stocks are extending gains to hover near one-month highs on Thursday, with easing political concerns and expectations of further easing measures by central banks helping underpin investor sentiment.
The European Central Bank is expected to cut its deposit rate and restart its asset purchase program when it meets next week.
Earlier today, Sweden’s central bank left its key interest rate unchanged, as expected, and signaled that it will hike rates in the future at a slower pace.
On the trade front, the United States and China have agreed to hold trade talks in Washington early next month in a bid to ease tensions in their rapidly escalating trade war.
The French CAC 40 Index has jumped by 1.1 percent and the German DAX Index has climbed by 0.8 percent, although the U.K.?s FTSE 100 Index has bucked the uptrend and slid by 0.7 percent.
Turnaround specialist Melrose Industries has soared after company said the three main divisions of GKN remain on track to meet targets.
Industrial giants BAE Systems and Rolls-Royce have also risen after French engine maker Safran raised its 2019 guidance for revenue and operating income. Safran shares have also spiked in Paris.
Shares of Dixons Carphone have jumped after the consumer electrical and mobile retailer reported that its Electricals revenue in the first quarter increased 3 percent on a reported and like-for-like basis.
German industrial and technology group ThyssenKrupp has also surged higher after it started a structured bidding process for its elevator unit.
Switzerland’s biggest bank UBS has also advanced. According to the Financial Times, the lender is planning a revamp of its investment bank amid falling profits over the last few quarters.
On the other hand, William Hill Plc., a betting and gaming company, has slumped after it appointed Ulrik Bengtsson as Chief Executive Officer Designate and a Director of the Company with immediate effect.
Vodafone Group has also moved lower after it announced a strategic partnership agreement with Oman Future Telecommunications in the Sultanate of Oman as part of Vodafone’s Partner Markets program.
Meanwhile, investors have shrugged off data from Destatis showing that German factory orders decreased more than expected in July on weak demand from abroad.
Factory orders tumbled 2.7 percent in July, in contrast to a revised 2.7 increase in June. Economists had forecast orders to drop 1.4 percent after June’s initially estimated growth of 2.5 percent.