EUROPE MARKETS: After Three Down Weeks, Europe Stocks Advance

Date : 08/19/2019 @ 11:04AM
Source : Dow Jones News
Stock : IMCD NV (IMCD)
Quote : 67.5  -1.55 (-2.24%) @ 4:39PM

EUROPE MARKETS: After Three Down Weeks, Europe Stocks Advance

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2 Months : From Jul 2019 to Sep 2019

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By Steve Goldstein, MarketWatch

Europe stocks on Monday advanced, as government officials across the globe discussed how the world economy could avoid a sharp downturn.

After losing ground for three straight weeks, the Stoxx Europe 600 index increased 0.67% to 372.11, with the hard-hit banking sector leading the advance.

The German DAX increased 0.78% to 11652.42, the U.K. FTSE 100 rose 0.72% to 7168.71 and the French CAC 40 rose 0.65% to 5335.50.

   U.S. stock futures   also were stronger. 

What's happening

After a report from news magazine Spiegel, last week that suggested Germany could deficit spend if it entered recession, Finance Minister Olaf Scholz over the weekend said the country has the strength to counter any economic crisis with "full force," according to a Reuters report. The yield on the benchmark 10-year bund edged up to -0.64%.

Underscoring the space the European Central Bank still has to loosen policy, Eurostat revised lower its estimate of inflation in the euro area in July to 1% from 1.1%. That's the slowest annual rate since Nov. 2016.

"An optimal policy mix would actually go beyond ECB easing, but be paired with governments helping, too. But fiscal policy is unlikely to come to a preventive rescue, or at least not very swiftly," said economists from Bank of America Merrill Lynch, who lowered their estimates of euro-area GDP by a tenth in 2019 and two-tenths in 2020.

Meanwhile, two White House aides over the weekend gave upbeat assessments of the global economy. In addition, President Donald Trump said he would consider a request from Apple CEO Tim Cook to consider the impact on U.S. tariffs.

Focus stocks

CYBG (CYBG.LN) shares rose 3.8% as UBS upgraded the Clydesdale Bank and Virgin Money UK owner to buy from neutral, saying it's underperformed the sector by 20% and U.K. banks by 15% since the company gave its last update.

IMCD (IMCD.AE) extended losses from last week, falling 3.9%. Deutsche Bank cut the Dutch food ingredient maker's target price after what it called a "disappointing" print.


(END) Dow Jones Newswires

August 19, 2019 05:49 ET (09:49 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

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