EUROPE MARKETS: Germany's DAX Ends Near 2-year High As Euro Softens
March 30 2017 - 12:28PM
Dow Jones News
By Sara Sjolin, MarketWatch
Stoxx Europe 600 ends at highest since Dec. 2015
European stocks rose for a third straight day on Thursday, with
the German benchmark logging its highest close since April 2015 on
the back of a sliding euro.
The DAX 30 index rose 0.4% to end at 12,256.43, just 118 points
short of its all-time closing high of 12,374.73 reached April 10,
2015. For the quarter, the index was looking at a 6.8% rally, its
third quarterly rally in a row.
The advance in Frankfurt came as the euro slumped to an almost
two-week low after disappointing German inflation data and a
Reuters report that the European Central Bank is trying to rein in
expectations that a rate hike
(http://uk.reuters.com/article/us-ecb-policy-idUKKBN1701HI) could
come as soon as December. A weaker euro tends to benefit the German
index, as many of its components are big exporters that sell their
products globally.
Read:Euro bulls just got a wake-up call from the ECB
(http://www.marketwatch.com/story/euro-bulls-just-got-a-wake-up-call-from-the-ecb-2017-03-30)
The shared currency traded at $1.0725
(http://www.marketwatch.com/story/pound-eases-slightly-as-investors-weigh-the-brexit-future-2017-03-30)
around the time of the European close, down from $1.0767 late
Wednesday in New York.
German inflation in March fell to 1.5% from 2.2% in February,
according to a flash estimate, missing analysts forecasts.
"Since the ECB's March meeting, markets have increasingly priced
in the possibility of a rate hike before the end of this year. A
scenario, which in our view has always been extremely remote.
Today's German data and tomorrow's eurozone data should help the
ECB in getting rid of such rate hike expectations," said Carsten
Brzeski, chief economist at ING, in a note.
March inflation data for the eurozone are due on Friday at 10
a.m. London time, or 5 a.m. Eastern Time.
Eurozone consumer confidence for March was confirmed at minus 5
points.
Other indexes: The Stoxx Europe 600 index added 0.5% to 380.46,
closing at its highest since December 2015, according to FactSet
data.
The pan-European benchmark on Wednesday ended 0.3% higher
(http://www.marketwatch.com/story/european-stocks-inch-higher-as-traders-wait-for-brexit-kickoff-2017-03-29),
as investors largely ignored the U.K. officially kicking off the
Brexit process by invoking Article 50 of the Treaty of
Lisbon--launching the formal process by which the country will end
its European Union membership.
The U.K.'s FTSE 100 index , however, ended a volatile Thursday
session down 0.1% at 7,369.52, pressured by a rise in the pound.
Sterling traded at $1.2486, up from $1.2435 late Wednesday in New
York.
The U.K. government on Thursday introduced a proposal for a
"Great Repeal Bill", its plans for converting existing EU law into
U.K. legislation
(http://www.marketwatch.com/story/brexit-uk-reveals-great-repeal-plan-to-replace-eu-laws-2017-03-30).
Read:Brexit: Here's what happens now that the U.K. has triggered
Article 50
(http://www.marketwatch.com/story/brexit-heres-what-happens-now-that-the-uk-has-triggered-article-50-2017-03-29)
Also read:'We already miss you,' EU president Tusk tells U.K.
after Brexit letter
(http://www.marketwatch.com/story/we-already-miss-you-eu-president-tusk-tells-uk-after-brexit-letter-2017-03-29)
Oil optimism: Gains for oil companies helped lift European stock
markets. Shares of Saipem (SPM.MI) added 1.4% after the Italian
energy giant said late Wednesday it had successfully returned to
the bond market as oil prices have started to recover.
Shares of Tullow Oil PLC (TLW.LN) jumped 7.7%, Total SA (TOT)
(TOT) added 1%, and Statoil ASA (STL.OS) moved 2.3% higher.
Oil prices rose on Thursday, with West Texas Intermediate crude
trading at a three-week high
(http://www.marketwatch.com/story/oil-prices-make-steady-gains-after-rallying-to-a-three-week-high-2017-03-30)
and on track for a third consecutive session of gains.
Other movers: Shares of H&M Hennes & Mauritz AB
(HM-B.SK) dropped 4% after the Swedish fashion retailer said
first-quarter profit fell 3%
(http://www.marketwatch.com/story/hm-profit-drops-as-sales-slow-in-tough-market-2017-03-30)
as sales slowed.
Ashtead Group PLC (AHT.LN) rose 2.4% after receiving a buy
rating from Liberum.
(END) Dow Jones Newswires
March 30, 2017 12:13 ET (16:13 GMT)
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