European shares surge, yet euro retreats ahead of ECB

  • by Ofeed Team
  • September 11, 2019, 13:58 AM
  • 21 Views
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European equities rose on Wednesday, supported by China’s move to exempt some U.S. goods from additional tariffs, while the Japanese yen was weaker as the improvement in risk appetite reduced demand on safe haven assets.

As of 08:11 GMT, the Euro STOXX 600 rose 0.53 percent to 388.48, France CAC 40 was 0.28 percent up to 5,608.48 and Britain’s FTSE 100 rose 0.71 percent to 7,318.65. In Germany, DAX ascended 0.75 percent to 12,362.62 points. 

China's Finance Ministry said today that 16 types of U.S goods would be exempted through additional retaliatory tariffs from Sept. 17, boosting investor confidence towards risky assets. 

Meanwhile, there is optimism among investors on expectations trade talks between the United States and China next month in Washington could bring some kind of progress and ease the trade dispute.

This was somewhat curtailed by White House trade adviser Peter Navarro on Tuesday, when he urged patience to resolve the two-year trade war, saying "let the process take its course." 

The U.S dollar rose against the Japanese yen, rising 0.26 percent at $107.80, the highest level since August 1.

Euro trades lower ahead of ECB meeting

The euro traded lower against the U.S dollar, where it slipped 0.15 percent at 1.1026 euros, ahead of the awaited ECB meeting tomorrow.

Attention is now turning to the ECB's monetary policy meeting on Thursday, as the central bank is expected to unveil a new wave of stimulus measures to support growth and inflation in the eurozone economy, 

The euro area’s biggest economies have been hardly hit by the escalating trade war between the United states and the China Sides, in addition to the lingering uncertainties about the Brexit.

The central bank may cut both euro area growth and inflation forecasts, which, if occurred, may negatively weigh on the common currency.  

The ECB could specify the tone for next week's interest rate decisions by the U.S Federal Reserve and the Bank of Japan.

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