European Markets traded higher for the second consecutive session on Thursday. Amid optimism regarding tax reform stateside, and investors digested comments from ECB policymakers.
Amid weakness in the single currency. Meanwhile, investors are anticipating market moving details on Tax reform in the United States.
Looking at the common currency, the euro rose against its dollar counterpart to trade at higher at 1.1783 at 17:00 GMT. On the other hand, the single currency was unchanged versus the safe-haven Japanese Yen to trade at 132.50 at 17:00 GMT. Moreover, The EUR advanced versus Swiss Franc to trade at 1.1431 at 17:00 GMT.
Looking at tax reform news in the U.S, Investors found optimism after the GOP released their framework for tax reform on Wednesday; the framework reduces corporate tax to 20%. Meanwhile, the framework proposes the creation of three individual tax rate and double the standard deduction.
European leading benchmark Stoxx 600 rose by 0.19% in Thursday's session to trade at 386.63 at the close. As gains generated in the Energy and Technology sectors led to share prices higher.
European Central Bank Chief Economist Peter Praet said at a conference held in Berlin that the ECB will discuss a policy recalibration, not an exit from stimulus. Thus, boosting the odds of prolonging its current ultra-easy fiscal policy.
Looking at individual equities in the Stoxx600, H&M share prices lost more than 5% after the Swedish retailer reported a 20% fall in quarterly pretax earnings compared to a year ago. Meanwhile, Ryan air is in the spotlight once more after the flight company announced further flight cancellation, the airliner shares price fell more than 2% on the news.
UK’s equities ended today’s session in positive territories; London’s leading benchmark FTSE100 rose by 0.13% to settle higher at 7,313.51. As gains generated in the Industrial, Energy, and Healthcare lifted share prices higher.
On the Brexit front, Brexit negotiators said that some progress was made in the last round. However, they did say that they were not in a position to discuss trade agreements.
In London, the top gainers of the session were; CRH PLC that advanced by 2.92%, while the Ferguson Plc rose by 2.79%. Moreover, Rolls-Royce Holdings PLC added 2.61%.
On Wednesday, the cable advanced against its U.S dollar counterpart to trade at 1.3438 at 17:00 GMT.
German equities rose for the third consecutive session on Thursday. The index found support from significant gains in the Basic Materials, Healthcare, and Technology sectors. German leading index DAX 30 advanced by 0.37% to end the session at 12,704.65.
Regarding economic news, Germany's GfK Consumer Climate indicator came in below expectations on Thursday to show a reading of 10.8, lower than the previous reading of 10.9 and below economist expectation of 11.0.
French equities ended today’s session in the green, Paris Primary benchmark CAC40 rose for two consecutive sessions to trade at 5,293.77, up by 0.22%. French shares were bolstered by gains in the Energy, Technology and Basic Material sectors.
In Paris, the top gainers of the session were; TechnipFMC PLC that jumped 3.68%, Followed by Accor SA that rose by 2.55%.Meanwhile, Solvay SA added 2.61%.
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