European stock indexes rebound at the start of
trading on Friday, on track for the fourth straight week of
gains, following a new stimulus package and easing measures by the
European Central Bank.
As of 08:30 GMT, the Euro STOXX 600 rose
0.05 percent to 390.66, France CAC 40 was 0.24 percent up to 5,656.42.
In Germany, DAX ascended 0.24 percent
to 12,440.60 points, led by Deutsche Bank AG shares which soared 1.5
percent after becoming the first financial services company to
resolve claims that conspired to rig the bond prices of Fannie Mae
and Freddie Mac.
Britain’s FTSE 100, however, slipped 0.21 percent
to 7,325.02.
Press reports revealed that the Board of
Directors of the London Stock Exchange will meet in the coming days to decide
on the Hong Kong Stock Exchange's offer of $36.6 billion.
The rally was by financial companies’ shares,
more specifically banks, as the ECB decided on Thursday to cut interest rates
on deposit facilities by 10 basis points to -0.50 percent.
ECB President Mario Draghi pledged an unlimited
stimulus to revive the euro area’s faltering economy, tying the hands of his
successor for years to come as he cut interest rates deep into the negative
zone.
He also decided to re-establish the asset
purchase program from Next November, with a monthly purchase of 20 billion
Euros.
U.S President Donald Trump said yesterday that
he did not rule out an interim trade agreement with China, after the two
countries showed signs of a thaw in their trade dispute, which led to
a rise in stocks associated with commodities.
The euro also extended its gains versus the
green currency to $1.1095 after reporting a peak at $1.1109, the highest since
August 27, despite backlash among ECB regarding the new stimulus package.
Eurostat data released on Friday showed that euro area seasonally
adjusted trade surplus widened to 19.0 billion euros in July, as exports surged
0.6 percent while imports stabilized.