European Stocks Diverge Awaiting US Return

European stocks diverge awaiting US return

LONDON, (APP - UrduPoint / Pakistan Point News -6th Sept,2016) - European stock markets narrowly diverged on Tuesday following unrevised eurozone growth data, while a firmer pound pulled London lower, as US traders return to their desks after a public holiday.

Around 1030 GMT, London's benchmark FTSE 100 index was down 0.3 percent to 6,857.89 points. In the eurozone, Frankfurt's DAX 30 rose 0.2 percent and the Paris CAC 40 climbed 0.1 percent compared with the close on Monday.

The pound advanced to $1.3338, building on Monday's gains won thanks to easing concerns over Brexit's economic fallout. Official eurozone data showed the single Currency's bloc expanded by 0.3 percent in the second quarter, which marked a slowdown from the first three months of the year.

Traders were meanwhile beginning to look ahead to the ECB's monetary policy update due Thursday. The European Central Bank, comforted by better-than-expected data since Britain's vote in June to exit the European Union, is likely to keep drastic monetary policy changes in reserve, analysts predicted.

Policymakers stress that many measures announced by the ECB in March -- when it lowered interest rates and extended stimulus measures -- have yet to take full effect. "Now that the summer trading period is behind us following yesterday's Labor Day vacation in the US, the focus of financial market participants will be very much on the upcoming monetary policy events," said Derek Halpenny, European head of markets research at the Bank of Tokyo-Mitsubishi UFJ in London.

Asian stock markets extended gains Tuesday on diminishing prospects of a US interest rate rise this month, traders said. Data last week showed a healthy increase in US jobs creation -- indicating an improving economy -- but not a strong enough figure to justify an early increase in borrowing costs.

Bank of Japan chief Haruhiko Kuroda has meanwhile pledged fresh stimulus if necessary and has deflected talk of scaling back on its massive easing policy. - Key figures around 1030 GMT - =============================== London - FTSE 100: DOWN 0.3 percent at 6,857.89 points Frankfurt - DAX 30: UP 0.2 percent at 10,695.41 Paris - CAC 40: UP 0.1 percent at 4,543.59 EURO STOXX 50: UP 0.1 percent at 3,081.29 Tokyo - Nikkei 225: UP 0.3 percent at 17,081.98 (close) Shanghai - Composite: UP 0.6 percent at 3,090.71 (close) Hong Kong - Hang Seng: UP 0.6 percent at 23,787.68 (close) New York - DOW: Reopens Tuesday Pound/dollar: UP at $1.3338 from $1.3311 late Monday Euro/dollar: UP at $1.1168 from $1.1147 Dollar/yen: DOWN at 103.19 Yen from 103.38 yen