European stocks jump to 7-week high ahead of ECB rate decision

2019-09-12 12:11:05 GMT (
European stocks jump to 7-week high ahead of ECB rate decision

European stocks opened higher today, continuing their rise for the third session to a 7-week high, amid continues positive signs on the easing of the US-China trade war, and ahead of the ECB monetary policy decisions after its meeting.


As of 10:22 GMT, stoxx Europe 600 Index rose by 0.4%, to the highest level since July 25th, while the index closed higher by 0.8% yesterday, on the banking sector's gains, as the market's concerns over the trade was eased. 


The index opened higher today, to extend its gains for the third consecutive session to a 7-week high, with most of the European markets and sectors surging.


The mining and core resources sector led the market up, with a rise of 0.6%, on higher copper and most industrial metals prices.


US President Donald Trump on Wednesday announced a two-week delay in import tariffs on Chinese imports worth $ 250 billion from 25 percent to 30 percent from October 1.


US President Trump in a good will gesture announced the delaying of the $250 billion tariffs increase on Chinese imports for nearly two weeks, until October 15th.


While the market interpreted this move as the latest sign on the easing of the US-China trade war after the announcement of a new round of trade talks in Washington in first of October.


Which comes after the Chinese Ministry of Finance announced on Wednesday that 16 US products would be exempted from 25% tariffs that were imposed since last year on animal food and oil products, with a 1-year exemption from September 17th.


Meanwhile, the European market's gains remain limited, as investors wait for the outcome of the ECB meeting, which is expected to see an interest rate cut for the first time since 2016.


The ECB will end its meeting today, and the rate decision and monetary policy statement will be released by 11:45 GMT, and Draghi's speech will be at 12:30 GMT.


S&P 500 futures rose by 0.4%, to a 6-week high ahead of Wall Street opening.


Euro Stoxx 50 index rose by 0.2%, in France the CAC 40 rose by 0.1%, while Germany's DAX rose by 0.2%, and in London, the FTSE 100 rose by 0.1%.

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