EUROPE MARKETS: European Markets Rise On China's Economic Pledge
January 15 2019 - 5:01AM
Dow Jones News
By Emily Horton
European markets were mostly in the green on Tuesday, after
Chinese government officials outlined plans to boost the country's
sluggish economy.
In the U.K., politicians are preparing to vote on Prime Minister
Theresa May's contentious agreement for leaving the European Union
in March.
How are the markets trading?
Most of Europe's major indexes were up on Tuesday, with the
Stoxx Europe 600 adding 0.2% to 348.17, after finishing down 0.5%
on Monday.
France's CAC 40 added 0.2% to 4,771.90, the U.K.'s FTSE 100 was
up 0.2% to 6,867.72 and Germany's DAX (DAX) gained 0.1% to
10,869.37.
Italy's FTSE MIB index was the biggest regional loser on Monday,
dropping 0.4% to 19,090.60.
The euro dropped to $1.1436 from $1.147 and the British pound
last bought $1.2874, slightly higher than $1.2866 late Monday.
What is driving the markets?
In China, government officials have stepped up efforts
(http://www.marketwatch.com/story/china-to-ramp-up-efforts-to-support-economy-2019-01-15)
to spur economic growth amid signs the country's economic slowdown
is deepening. Beijing intends to improve credit availability for
smaller companies, accelerate infrastructure investment and cut
taxes
(http://www.marketwatch.com/story/china-to-slash-taxes-keep-currency-stable-to-offset-slowdown-2019-01-14).
In the U.K, a landmark vote over May's divisive agreement for
Brexit is scheduled to take place at 22:30 GMT on Tuesday. Most
expect it to be rejected, with more than 100 Conservative
politicians currently opposed to its terms.
In the event that the deal is voted down, May will have three
days to come up with an alternative for exiting the European Union
on March 29. However, EU leaders have insisted that the deal
already agreed is the only one on offer.
The U.S. and European Union have sharply differing goals for
coming trade negotiations on, raising the prospect for renewed
trans-Atlantic tensions, The Wall Street Journal reports
(https://www.wsj.com/articles/u-s-eu-set-conflicting-goals-for-looming-trade-talks-11547500468).
And Germany's economy slowed sharply last year
(http://www.marketwatch.com/story/germanys-economy-slowed-sharply-in-2018-2019-01-15),
shaken by softening consumer spending at home and weakness in key
export markets.
What stocks are active?
Portuguese food distributor Jeronimo Martins SGPS SA (JMT.LB)
added 5%.
In financial stocks, private-equity firm Partners Group Holding
AG (PGHN.EB) gained 3%.
Italian banks were down on Tuesday, with Unione di Banche
Italiane SpA (UBI.MI) dropping 7% and Banco BPM SpA (BAMI.MI)
losing 6%.
Meanwhile, manufacturer AMS AG (AMS.EB) rose by 3%.
(END) Dow Jones Newswires
January 15, 2019 05:46 ET (10:46 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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