Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

StockBeat - Markets Extend Relief Rally; Banks Lag on ECB Fears

Stock MarketsJun 05, 2019 04:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith

Investing.com -- After some hesitation at the opening, Europe’s stock markets rose in early trading Wednesday, extending a relief rally that began on Tuesday when Federal Reserve President Jerome Powell hinted at a possible interest rate cut.

Powell had said in a speech on Tuesday that “as always, we will act as appropriate to sustain the expansion,” after voicing concern about the uncertainty created by recent trade- and immigration-related disputes with China and Mexico. There was no mention of the “patient” approach to policy-making that has dominated Powell’s recent communication.

At 04:30 AM ET (0830 GMT), the benchmark Euro Stoxx 600 was up 0.8 points, or 0.2% at 373.74, near its highest in a week. The German Dax and the U.K. FTSE 100 were both up 0.2%.

Sentiment was also lifted by a surprising rise in IHS Markit’s service sector surveys around the continent. The Eurozone service purchasing managers index rose to 52.9 in May, better than the unchanged reading of 52.5 that was expected. National indexes weakened in France, Italy and Spain, but rose in Germany.

The biggest laggard was Italy’s FTSE MIB, down 0.1%, unsettled by a vote in the lower house of parliament that indirectly endorsed the populist coalition’s vague plans to issue a parallel currency in the form of short-dated government bonds, known as MiniBOTs. Italian press reports have also suggested that the EU has already made up its mind to open an “Excessive Deficit Procedure” against Italy for violating fiscal rules.

Banks are among the worst performers again on Wednesday, as the thought of Fed easing turns minds to the European Central Bank’s policy meeting on Thursday. Some analysts expect the ECB to push back the date for its first interest rate hike beyond the end of this year, which would prolong the intense pressure on bank margins from low rates.

Credit Agricole (PA:CAGR), Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) were all lagging the local benchmark index, as were Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) and Spain’s Santander (MC:SAN), BBVA (MC:BBVA) and Caixabank (MC:CABK). In the Netherlands, ING (AS:INGA) and ABN AMRO (AS:ABNd) were at the bottom of the AEX.

StockBeat - Markets Extend Relief Rally; Banks Lag on ECB Fears
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Pietro Rosato
Pietro Rosato Jun 05, 2019 5:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If rigging isn't the reason for this "rally" please let me know. The market is like a junkie, it needs a fix and a rate cut would be the drug. there is no economy that exists to support or sustain a 26k Dow. What a mess that has been created.
Silvio Bullishconi
Silvio Bullishconi Jun 05, 2019 5:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Best comment today, spot on
Robert Predicts
Robert Predicts Jun 05, 2019 5:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If China can de-value their currency to joke levels, we can lower interest rates to play ball. It's not a permanent long term strategy but in the short, it's brilliant. Fight fire with fire. If nobody plays hard with China they'll be stealing from the US for decades to come. Glad we have a president with **** About time.
Patrick Joly
Patrick Joly Jun 05, 2019 5:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trade war doesn't exist anymore, of corse, Powell would be welling to cut the rate. Make sense.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email