European stocks rise on hopes for German stimulus

2019-08-19 12:50:56 GMT (Economies.com)
European stocks rise on hopes for German stimulus

European stocks opened higher today, to extend their gains for the second straight session led by German stocks, after German government stressed its intentions to inject more stimulus into the economy to face the recession risks, which coincides with China's similar measures.

 

As of 11:30 GMT, Stoxx Europe 600 Index rose by 1.3%, as it closed on Friday higher by 1.2%, its first gain in the last 3 sessions, in recovery attempts from 6-month low, as German stocks rebounded.

 

The index opened higher today, to extend gains for the second straight session, with most of the European markets and sectors rising.

 

The auto industry led the rising sectors in Europe, by rising more than 1.5%, on market's hopes for Germany's stimulus, in addition to US-China trade war fears easing.

 

German Minister of Finance, Olaf Schulz, said yesterday that Germany has the financial strength to ease any future economic crisis, and that the 2008 global financial crisis cost on Berlin was about 50 billion euros ($55 billion), adding that the government is ready to spend a similar amount to face any economic crisis in the future.

 

Whilst in China, the People's Bank on Saturday announced an interest rate reform and a cut in corporate borrowing costs, to stimulate the economy to recover from the trade war impacts.

 

Meanwhile, S&P 500 futures rose by more than 1.1%, after it closed on Friday at Wall Street higher by 1.4%, in its second daily gain.

 

Euro Stoxx 50 rose by 1.3%, followed by the french CAC 40 index, which rose 1.3%, while in Germany the DAX index rose by 1.5% to top the list of gainers in Europe, and in London, the FTSE 100 rose by 1.2%.

 
 
 
  Symbol Last Change Chg.%
1.1012
-0.0063
0.5684%
1.2413
-0.0070
0.5568%
17.852
0.401
2.298%
61.980
7.087
12.909%
69.02
8.80
14.61%
1499.375
10.395
0.698%
 
 
US
 
Europe
 
Asia