European stocks jump to 6-week high on hopes of monetary policy easing

Economies.com
2019-06-20 12:02PM UTC

European shares jumped on Thursday to a six-week high, extending gains for a third session in a row as investors raised hopes that central banks will adopt moves to ease monetary policy to boost the global economy in the face of recession and deflation.

 

As of 11:25 GMT, Stoxx Europe 600 rose by more than 0.6%, its highest level since May 6, and the index ended yesterday's session up by 0.1%, the second daily gain in a row.

 

The index rose on Thursday morning to continue its gains for the third session in a row, hitting a six-week high, with most major stock exchanges and sectors in the green Zone.

 

The technology sector led the gainers in Europe with a gain of more than 1.8%, while the banking and financial sectors declined by 0.8% delivering  the worst performer.

 

Investors hope this week for global central banks to adopt moves to ease monetary policy to boost the global economy in the face of recession and price deflation.

 

"If the economic situation in the eurozone deteriorates in the coming months, the ECB will announce further stimulus," ECB governor Mario Draghi said on Tuesday.

 

The US Federal Reserve said on Wednesday it was ready to ease monetary policy and cut interest rates to meet global and local challenges.

 

S&P 500 futures rose 1.1% to a seven-week high ahead of the opening of Wall Street's official trading session. as the index ended yesterday's session up by 0.3% on the third daily gain in a row.

 

Euro Stoxx 50 rose by 0.7%. while in France, the CAC 40 index gained 0.6%. with London's FTSE 100 adding more than 0.5%.

 

In Germany, the DAX index rose by more than 0.8%, hitting its highest level in nearly nine months, to lead the list of winning markets in Europe.

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