EUROPE MARKETS: European Stocks Waver Ahead Of First ECB Call Of The Year
January 19 2017 - 4:56AM
Dow Jones News
By Sara Sjolin, MarketWatch
Analysts hope for confirmation QE will continue through 2017
European stock markets struggled for direction in the early
going on Thursday, with investors taking a cautious stance ahead of
the European Central Bank's first policy meeting of the year.
The Stoxx Europe 600 index inched 0.1% higher to 363.30, still
trying to recover from its selloff on Monday and Tuesday. The
pan-European benchmark on Wednesday closed 0.2% higher
(http://www.marketwatch.com/story/european-stocks-wander-as-corporate-updates-come-into-focus-2017-01-18)
after a round of well-received corporate news.
On Thursday, shares of Zodiac Aerospace shot up after news it
has agreed to be bought out by Safran SA, in a deal that values the
plane cabin interiors specialist at 8.5 billion euros ($9
billion).
The key event for Thursday is the ECB meeting in Frankfurt,
where it will deliver its first policy decision since extending the
run of quantitative easing in December. Since then, eurozone
inflation has risen sharply, while Germany has called for the bank
to bring its ultra-accommodative bond buying to an end.
Read:'The more boring, the better' -- what to watch from the ECB
today
(http://www.marketwatch.com/story/the-more-boring-the-better-why-analysts-are-hoping-for-an-ecb-snoozer-2017-01-18)
ECB President Mario Draghi is expected to defend the bank's
easing position and keep rates at a record low, by arguing that the
rise in inflation is mainly due to a jump in energy prices. The
rate decision is due at 12:45 p.m. London time, or 7:45 a.m.
Eastern Time, followed by Draghi's press conference at 1:30 p.m.
London time.
The euro traded at $1.0651 ahead of the decision, up from
$1.0630 late Wednesday in New York.
"The risks around today's ECB meeting and press conference are
moderately to the downside for [the euro]," Adam Cole, head of G10
FX Strategy at RBC Capital Markets, said in a note.
"We again expect Draghi to go to lengths to stress that the
reduction in monthly asset purchases announced at the last meeting
does not constitute tapering," they added.
At its last meeting, the ECB said it would extend its QE program
to end in December 2017, rather than March 2017. However, it
reduced its bond buying to 60 billion euros a month from the
current EUR80 billion.
Other indexes: Germany's DAX 30 index slipped 0.1% to 11,592.04,
while France's CAC 40 index gave up 0.1% to 4,847.97.
The U.K.'s FTSE 100 index lost 0.3% to 7,224.49.
Movers: Shares of Zodiac Aerospace (ZC.FR) rocketed 21% after
French aerospace supplier Safran (SAF.FR) said it will buy the
cabin seat manufacturer
(http://www.marketwatch.com/story/safran-agrees-to-buy-zodiac-aerospace-2017-01-19-14854639)
in a deal that should create the No. 3 aerospace supplier to big
plane makers Airbus SE and Boeing Co.
Moneysupermarket.com Group PLC (MONY.LN) jumped 6.7% after the
price-comparison website said adjusted full-year operating profit
has risen
(http://www.marketwatch.com/story/moneysupermarket-to-post-8-rise-in-profit-2017-01-19)8%.
Newly-merged Royal Ahold Delhaize NV (AD.AE) climbed 3.9% after
the supermarket operator said a strong performance in the
Netherlands
(http://www.marketwatch.com/story/royal-ahold-delhaize-sales-helped-by-netherlands-2017-01-19)
helped to offset mixed results in the U.S. in the fourth
quarter.
Royal Mail PLC (RMG.LN) dropped 4.7% after the mail and parcel
delivery company said sales in the U.K. fell 25% in the nine months
to Dec. 25.
(END) Dow Jones Newswires
January 19, 2017 04:41 ET (09:41 GMT)
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