European Stocks Rise On Stimulus Hopes
LONDON, (APP - UrduPoint / Pakistan Point News - 22th july, 2016) - European stock markets rose Friday with hopes of more central bank stimulus reignited by data showing Brexit is impacting activity in Britain and the eurozone. London's benchmark FTSE 100 index was up 0.4 percent in midday deals, spearheaded by Vodafone shares which jumped four percent on news of unexpectedly strong first-quarter revenues for the British mobile phone giant. In the eurozone, Frankfurt's DAX 30 index added 0.1 percent and the Paris CAC 40 climbed 0.3 percent in value. Traders digested the latest key surveys on private sector activity, or Purchasing Managers Index (PMIs), in both Britain and the eurozone. "The numbers today, particularly from the UK, have helped the case for another round of monetary stimulus from central banks," said analyst Craig Erlam at trading firm Oanda.
"The Bank of England looks likely to move first next month once it has evidence that the economy is either already suffering or, as the PMIs today suggest, is expected to slow going forward as confidence is sapped out of the most important sector of the economy," he told AFP. "I think the European Central Bank (ECB) will likely follow in September, although today's numbers suggest there's more confidence ...
than people maybe expected. "It will be interesting to see how the data pans out between now and the September meeting."