Fundamental Comment

Europeans stocks advance on rise in Chinese exports, stable yuan

Europeans stocks advance on rise in Chinese exports, stable yuan

European stock indexes rose in early trading on Thursday, as investors turn to risky assets after a stronger-than-expected rise in Chinese exports and a stability in the yuan.  

As of 07:53 GMT, The Euro STOXX 600 index rose 0.8 percent to 371.52 points, extending its rise for a second straight session after a week filled with turmoil centered on a renewed escalation in U.S and China trade tensions.   

France's CAC index was up 0.96 percent at 5,315.99 points, Britain’s FTSE 100 index edged up 0.16 percent at 7,206.45 and Germany’s DAX 30 index surged 0.79 percent to 11,740.56.  

The gains in European equities followed advances in Asia, with the Japanese Nikkei index closing 0.37 percent higher at 20,593.35 points after the benchmark index suffered losses for four straight sessions.  

Data released on Thursday showed that the Chinese exports unexpectedly soared 3.3 percent in July from an earlier year, while the imports declined by less than 2 percent, as expected.  

On the other hand, the yuan currency rose 0.2 percent at 7.0449 per dollar after the People's Bank of China set a stronger than expected daily reference rate at 7.0039 per dollar, which is the lowest level since April 21, 2008. 

Beijing helped by stabilizing the yuan at a more stable level than many had feared, even though it was above 7 per dollar for the first time since the global financial crisis. 

Chicago Fed president Charles Evans said yesterday he was in favor of more rate cuts by the Federal Reserve to support weak inflation and counter risks stemming from the melting trade war with China.

The dollar index, which measures the performance of major six currencies against the dollar, fell 0.07 percent to 97.287. 

The euro rose to $1.1218 despite ECB warnings in its monthly Economic Bulletin that prolonged uncertainty was dampening the euro zone’s growth outlook.

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