Investing.com - Financial Markets Worldwide

European shares back to earth after Draghi bombshell

Published 19/06/2019, 08:31
European shares back to earth after Draghi bombshell
STOXX
-
SX7P
-
VMUK
-

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
June 19 (Reuters) - European stock markets were flat on
Wednesday after posting their best results in five months a day
earlier thanks to a strong policy speech from European Central
Bank chief Mario Draghi that flagged a potential return to
bond-buying and lower interest rates.
Draghi's speech sank the euro and drove major euro zone bond
yields back below zero, slashing effective market borrowing
costs, giving a boost to companies worried by sagging growth and
driving the pan-European STOXX 600 index .STOXX almost 2%
higher.
It was flat compared to Tuesday's close by 0709 GMT,
although interest rate sensitive banking stocks .SX7P
outperformed with a 0.7% rise.
Clydesdale and Yorkshire Banking Group CYBGC.L bucked that
trend to gain 2.8% after the British lender pledged to make an
additional 50 million pounds ($62.75 million) in savings from
its takeover of rival Virgin Money. Also keeping markets afloat was news that China and the
United States are rekindling trade talks ahead of a meeting next
week between Presidents Donald Trump and Xi Jinping at the G-20
summit in Japan, sparking hopes that the tensions between the
two sides would abate. Draghi's speech has also further upped the stakes for a
Federal Reserve policy meeting that will be Wednesday's main
market event, already expected to point the way to interest rate
cuts for the second half of this year.


Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.