European stocks jump to 6-week high after Mario Draghi's remarks

2019-06-18 12:12:29 GMT (Economies.com)
European stocks jump to 6-week high after Mario Draghi's remarks

European shares jumped to their highest level in six weeks in Tuesday morning, making their first gain in the last three sessions, after comments by European Central Bank President, Mario Draghi, in which he promised to provide more stimulus if the economic situation in the eurozone deteriorates more.

 

Stoxx Europe 600 rose more than 1.2% at 11:29 GMT, its highest level since May 7, while it ended yesterday's session down by 0.1%, the second consecutive daily loss.

 

Stoxx Europe jumped in Tuesday morning to its highest level in six weeks, making its first gain in the last three sessions, with most major stock exchanges and sectors in the Green Zone.

 

Mining and basic resources are the top gainers in Europe with a gain of more than 1.5%, with most of the metal prices on the global market rising.

 

Mario Draghi said at the ECB forum in Sintra, Portugal "If the euro zone economy deteriorates in the coming months, the central bank will announce further stimulus".

 

"In the absence of improvement, and if kept inflation going far from our target, additional incentives will be needed," Draghi said.

 

Draghi pointed out that additional incentives may come through lowering interest rates or through assets purchases "public and private bonds".

 

Euro fell more than 0.3% against US dollar within minutes after the comments, hitting a two-week low of $1.1181.

 

While S&P 500 futures rose more than 0.5%, as the index ended yesterday's session on Wall Street, up by 0.1%.

 

Meanwhile, the US Federal Reserve will begin its two-day meeting later today to discuss appropriate monetary policy for the US economy, especially in light of the trade wars that the United States is waging with several countries.

 

Euro Stoxx 50 index rose by 1.9%. with France's the CAC 40 index rising by 1.4% to top the gainers list in Europe. while in Germany, the DAX rose by 1.2%. and London's FTSE 100 added more than 0.8%.

 
 
 
  Symbol Last Change Chg.%
1.1255
-0.0018
0.1583%
1.2496
-0.0079
0.6282%
15.414
0.196
1.288%
59.468
-0.865
1.434%
66.48
0.03
0.05%
1412.910
-2.585
0.183%
 
 
US
 
Europe
 
Asia