European stocks rise in early trading
29th of October. (Dow Jones). European stocks rise in early trading on Wednesday, focusing on the sharp growth of quotations on Wall Street in the previous session. Later during the day it will be made public statement after a meeting of the US Federal Reserve
The central bank is expected to announce the completion of the bond purchase program, known as quantitative easing, but it will indicate that interest rates will remain low for an extended period, that support the action.
“We expect the statement will indicate the tendency to preserve the loose monetary policy, and that is important in it, in our opinion, continue the phrase” considerable period “in regard to the current level of interest rates,” – said Riccardo Barbieri, chief expert of the European economy in Mizuho International in London.
Dzhozef Lavorna, chief expert on the US economy in the Deutsche Bank, says he expects “only cosmetic changes” in how the Fed assesses the situation in the economy, and its comments on the labor market may be a little more positive.
The press conference is foreseen, so that with time would change the wording of the Fed is likely to help judge the minutes of the meeting, which will be published on November 19 said Lavorna.
Coupled with a strong corporate reporting of this it was enough to make US stocks extended their winning streak to four sessions: Dow Jones Industrial Average rose by 1,1%, S P 500 – by 1.2%.
Judging by the futures at the opening of trading on Wednesday S P 500 remains approximately constant.
Stoxx Europe 600 to the middle portion of the morning session increased by 0.3%, London FTSE 100 rose 0.5%, German and French CAC DAX added 0.7% and 0.2% respectively.
The euro traded broadly stable against the dollar at 1.2737 dollar, while the greenback fell slightly against the yen to 108.04 yen per dollar.
For the rest, the focus is corporate reporting in Europe. Investors have received both positive and negative surprises.
Shares of Dutch contractor Fugro NV fell by almost 25% after the group warned that its results in the second half of the year will be significantly lower than expected due to the rapid deterioration of market conditions, which leads to project delays, delays, cancellations and price pressure.
Meanwhile, shares in the Danish logistics company DSV AS rose by 4%, leading the growth in the composition Stoxx 600, after the company reported an increase in net profit in the 3rd quarter and said its annual operating profit will be at the upper limit of the forecast range.
Spanish lender Banco Bilbao Vizcaya Argentaria SA also reported a sharp increase in net profit in the 3rd quarter, while Deutsche Bank, the Norwegian oil company Statoil AS and the French Total SA reported disappointing quarterly results.
Shares of Sanofi SA fell by about 3% after the French pharmaceutical company fired CEO and warned of weak growth in unit antidiabetic drugs.
Barclays, Deutsche Bank and Jefferies worsened their recommendation for Sanofi shares. From the beginning, their value fell by more than 7%, and since the beginning of this month, a drop in prices exceeds 20%.
“We have recommended buying shares of Sanofi since they began to conduct research coverage on them in 2009, but it now believes that it is time to wait,” – noted the analysts of Deutsche Bank.
Brent crude oil prices increased by 0.4% to 86.43 dollars per barrel, while gold prices stabilized at the level of 1228.80 dollars per ounce.
Investors in the last days of withdrawal from this precious metal on the back of improved economic data and the recovery of equity markets after a rollback earlier this month.
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