Europe open: Euro dips after ECB report, lifts selling pressure

By

Sharecast News | 19 Jul, 2017

European stocks staged a small bounce at the start of the day as a dip in the single currency helped to lift some of the selling pressure on equity markets, amid talk that the European Central Bank might not be as near as some may have thought to tinkering with its guidance.

As of 0900 BST, the benchmark Stoxx 600 was 0.44% or 1.67 points higher to 384.25 while Germany's Dax was up 0.22% or 27.53 points at 12,457.18 and France's Cac-40 ahead by 0.30% or 15.69 points to 5,188.96.

In parallel, euro/dollar was down 0.33% to 1.1518.

According to a sourced-report from Bloomberg, ECB staff were examining alternative scenarios for the future path of the central bank's bond purchase programme.

Nevertheless, the fact that such studies were being carried out did not mean a change in stimulus was imminent. No formal discussions about an end to so-called quantitative easing had yet taken place and the same sources told the newswire that officials had "limited" appetite for any significant change in policy.

In the background, ECB Governing Council member Francois Villeroy de Galhau reportedly said on Wednesday morning there was still a need for accommodative monetary policy.

On the economic calendar for Wednesday, euro area construction figures for May were set for release at 1000 BST, followed by a reading on Belgian consumer confidence for July at 1400 BST.

Later in the day, at 1330 BST, the National Association of Realtors will release its latest data on US housing starts.

US private equity groups Bain Capital and Cinven tabled a fresh takeover bid for Stada.

Germany's Daimler said it would invest €220m to upgrade over three million Mercedes-Benz diesel engine cars.

Akzo Nobel boss Ton Buechner resigned for health reasons.

Carrefour's Brazilian unit priced its shares at the lower end of the expected range ahead of its upcoming flotation.

A top executive at Spain's Iberdrola told Reuters his company was planning to enter the Italian retail electricity market by year-end.

Last news