European Stocks Ease Back, Asia Mixed

European stock markets eased lower in quiet trade Monday after the US Federal Reserve signalled it would keep interest rates at unprecedented lows for as long as it takes to get through the coronavirus crisis

Paris, (UrduPoint / Pakistan Point News - 31st Aug, 2020 ):European stock markets eased lower in quiet trade Monday after the US Federal Reserve signalled it would keep interest rates at unprecedented lows for as long as it takes to get through the coronavirus crisis.

London was closed for a public holiday, leaving Paris and Frankfurt to set the tone with very slight drops in afternoon exchanges.

In New York, the Dow Jones index gained 0.6 percent in early trading, however.

"Cheap central bank money is going to continue to support the stock markets," said independent analyst Timo Emden in Frankfurt.

The Fed's pledge of trillions of dollars in support has been key to stock market gains since the massive virus-induced sell-off in March.

US Fed chief Jerome Powell on Thursday went even further, saying the US central bank would focus on growth and jobs from now on rather than on inflation, meaning that interest rates and controlling inflation would be a secondary consideration.

Stephen Innes at AxiCorp noted that during the financial crisis, the US began cutting interest rates in mid-2007 and did not lift them until more than eight years later.

He felt it might take just as long to see them hiked again.

Meanwhile, Asian shares were mostly lower, with Hong Kong down one percent as Shanghai dipped 0.

2 percent, both having jumped more than one percent earlier.

Tokyo rose more than one percent, shrugging off concerns over who would succeed Prime Minister Shinzo Abe after news that US investment legend Warren Buffett had bought huge holdings in top Japanese companies.

Positive service sector data in China helped offset slower manufacturing figures and offered reassurance the world's number two economy is emerging strongly from the coronavirus crisis.

- Key figures around 1330 GMT - London - FTSE 100 closed for public holiday Frankfurt - DAX: FLAT at 13,030.70 points Paris - CAC 40: DOWN 0.1 percent at 4,997.92 EURO STOXX 50: DOWN 0.5 percent at 3,300.39 New York - Dow: UP 0.6 percent at 28,653.87 Tokyo - Nikkei 225: UP 1.1 percent at 23,139.76 (close) Hong Kong - Hang Seng: DOWN 1.0 percent at 25,177.05 (close) Shanghai - Composite: DOWN 0.2 percent at 3,395.68 (close) Euro/dollar: UP at $1.1939 from $1.1903 at 2100 GMT on Friday Dollar/yen: UP at 106.03 yen from 105.34 yen Pound/dollar: DOWN at $1.3331 from $1.3349 Euro/pound: UP at 89.56 pence from 89.13 penceWest Texas Intermediate: UP 0.5 percent at $43.17Brent North Sea crude: UP 0.4 percent at $46.01 per barrel.