Euro­pean stocks rise on prob­a­bil­ity of more stim­u­lus

Malta Independent - - FINANCIAL -

Mario Draghi’s pol­icy up­date lifted al­most all Euro­pean equity mar­kets on Fri­day, with euro-area bank­ing shares steal­ing the spot­light.

The Euro Stoxx Banks In­dex climbed 2.1 per­cent, a fifth day of gains and the most on a Euro­pean Cen­tral Bank de­ci­sion day since Jan­uary. Draghi said the ECB prob­a­bly won’t stop its as­set buy­ing abruptly, in­di­cat­ing a po­ten­tial ex­ten­sion of its stim­u­lus pro­gram. Spec­u­la­tion that the cen­tral bank pres­i­dent is get­ting ready to loosen the lim­its of as­sets el­i­gi­ble for buy­ing has sent lenders ral­ly­ing about four times more than the rest of the mar­ket in Oc­to­ber.

While Draghi said the Gov­ern­ing Coun­cil didn’t dis­cuss pro­long­ing or ta­per­ing the stim­u­lus pro­gram, he noted that eco­nomic fore­casts in De­cem­ber and the re­sults of in­ter­nal stud­ies on op­tions to avoid run­ning into bond short­ages will help the de­ci­sion then.

The bench­mark Euro Stoxx 50 In­dex rose 0.7 per­cent to its high­est level since the 8 Septem­ber, while its banks closed just 1.2 per­cent away from its level be­fore the U.K. vote to leave the Euro­pean Union.

Asian stocks pared their big­gest weekly ad­vance in a month as health-care com­pa­nies led losses and an earth­quake in west­ern Ja­pan weighed on Tokyo eq­ui­ties. Hong Kong mar­kets were shut due to a typhoon.

The MSCI Asia Pa­cific In­dex fell 0.3 per­cent to 139.70 as of 3:03 p.m. in Hong Kong, halt­ing a three­day gain. Ja­pan’s Topix in­dex slid 0.4 per­cent from a May high, paced by a slump in Nin­tendo Co. The quake, which struck Tot­tori pre­fec­ture, led to power out­ages and halted bul­let trains. Hong Kong can­celed stock trad­ing for the day as Typhoon Haima lashed the global fi­nan­cial cen­ter, prompt­ing schools to close and air­lines to sus­pend flights.

This ar­ti­cle was com­piled by Val­letta Fund Man­age­ment Lim­ited, a mem­ber of the BOV Group.Val­letta Fund Man­age­ment,TG Com­plex, Suite 2, Level 3, Brew­ery Str, Mriehel BKR 3000 Freep­hone: 80072344. E-mail: in­fovfm@bov.com. Web­site: www.vfm.com.mt. Val­letta Fund Man­age­ment Lim­ited is li­censed by the MFSA.

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