European Stocks Lifted by Better Economic Data
November 22 2019 - 05:25AM
Dow Jones News
By Paul J. Davies
European stocks looked set to end the week on a brighter note
after German and French industrial survey data proved to be better
than expected for November.
The Stoxx Europe 600 index advanced 0.4% while futures linked to
the S&P 500 index climbed 0.2%. That followed a mixed
performance in Asian markets, where Hong Kong's Hang Seng Index
ended the day up 0.5% and the Shanghai Composite gauge finished
0.6% lower.
For the eurozone as a whole, monthly manufacturing activity
showed an improvement from October and beat the market's
expectations, buoying investor sentiment. Germany's manufacturing
and services purchasing managers indexes for November were stronger
than expected, although both continue to signal contractions with
readings below 50. At the same time, Germany's economy returned to
growth in the third quarter, meeting expectations for a 0.1%
expansion.
The data bolstered recent signs of stabilization in the European
economy that have led some economists, such as those at Morgan
Stanley, to strike off expectations for a further interest rate cut
from the European Central Bank in coming months.
Meanwhile, Christine Lagarde on Friday called for help from
fiscal policy in her first public speech since taking over as the
new ECB president. She said monetary policy could achieve its goal
faster with fewer side effects if other policies were supporting
it.
Government bond yields fell in Europe with German 10-year bund
rates sliding to minus 0.356% from minus 0.336%. French, Italian
and other major European government bond yields also slipped. The
euro was mostly flat against the dollar, trading at $1.105.
Elsewhere in markets, gold advanced 0.5% higher to $1,471.10 a
troy ounce.
Later in the day, the University of Michigan's final consumer
sentiment index for November will provide an indication on whether
Americans' outlook has dimmed from earlier in the month.
Write to Paul J. Davies at paul.davies@wsj.com
(END) Dow Jones Newswires
November 22, 2019 05:10 ET (10:10 GMT)
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