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Europe close: Stocks gain amid dovish ECB talk

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Europe close: Stocks gain amid dovish ECB talk

Tue, 12 September 2017
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(ShareCast News) - Stocks pushed higher again, tracking gains on Wall Street and amid dovish remarks from the European Central Bank's second-highest ranking official.
Against that backdrop, the focus in markets on Tuesday was expected to be on tech giant Apple's launch of its new iPhone 8, after the close of trading.

By the closing bell, the benchmark Stoxx 600 was 0.52% or 1.99 points higher to 381.42, alongside a gain of 0.40% or 49.53 points to 12,524.77 for Germany's Dax and a rise of 0.62% or 32.30 points to 5,209.01 in the French Cac-40.

In parallel, euro/dollar was edging up 0.03% to 1.1960.

Speaking in Frankfurt, ECB vice-president Vitor Constancio said the monetary authority was confident that if a "sufficient" degree of monetary accomodation was maintained then it was confident that its inflation target would eventually be met.

In the background, overnight the UN Security Council approved to force a reduction in North Korea's energy supplies, cut-off its sales of textiles overseas and to toughen rules for the inspection of ships which may be carrying illegal cargoes.

However, under pressure from China and Russia the sanctions stopped well short of a ban on oil exports to North Korea, which would cripple its economy, or of ordering a 'freeze' on the personal financial assets of its leader, Kim Jong Un.

Meanwhile, in Switzerland, according to Nippon Television North Korean officials and former US ones were planning informal talks.

Later in the day, the Federal Reserve's monthly JOLTS labor market study led analysts at Capital Economics to a similar conclusion as Constancio.

"Even if the traditional Phillips curve relationship isn't as strong as it once was, more firms chasing fewer workers will put wage growth on an upward trend again before long," they told clients.

On the coporate front, Kingdom Holding announced it was to purchase a 16.2% stake in Banque Saudi Fransi from Credit Agricole.

French oil major Total's 225,000 barrel a day refinery at Port Arthur, Texas, may be shuttered for weeks as a result of damage from Hurricane Harvey, Reuters reported citing market sources Stateside.

Deutsche Bank's head of subprime mortgage lending was charged with civil fraud in connection to the last financial crisis.

NASDAQ 100 Top Risers

Name Last Chg.% Time
T-Mobile Us, Inc. 64.71 4.71 16:07
Hasbro Inc 95.61 2.54 16:07
Mattel Inc. 15.13 1.75 16:07
Wynn Resorts Ltd. 146.32 1.72 16:07
KLA-Tencor Corp. 102.32 1.40 16:07

NASDAQ 100 Top Fallers

Name Last Chg.% Time
Seagate Technology Plc 31.90 -4.83 16:07
Tesla Inc 375.12 -2.57 16:07
Western Digital Corp. 87.02 -2.42 16:07
O'Reilly Automotive Inc. 205.54 -2.16 16:07
Expedia Inc. 139.22 -2.07 16:07