The last trading day of the week started on an upward trend on European stock exchanges.
The Euro Stoxx 600 general index, which broadly describes the European stock market, rose 1.0 percent after about 20 minutes of trading. The rise in the index was driven by shares of the energy sector as stock markets opened.
Of the individual shares in the index, the luxury goods company in particular attracted attention Richemont, which fell short of analysts’ expectations for the first half of the year. Richemont’s stock traded clearly in the morning.
After about 20 minutes of trading, the Frankfurt Stock Exchange’s DAX index was up 0.9 per cent and the London FTSE 100 was up 1.4 per cent. OMXS30, which describes the most traded shares in Stockholm, had hurt 1.0 percent.
In Germany, recent producer price statistics were published in the morning. German producer prices rose by 33.5 per cent year-on-year in April, after an increase of 31.3 per cent in economists’ expectations.
In the afternoon, consumer confidence figures for the eurozone will be released in Europe. The consensus forecast for the consumer confidence score is -21.5.
Mortgages became cheaper in China
Wall Street closed in the cold yesterday, but Asian stock markets have been on a strong rise today. The People’s Bank of China announced at night that the five-year prime rate offered by Chinese banks had fallen from 4.60 per cent to 4.45 per cent, while the market rate was expected to fall by only 0.05 to 0.10 percentage points. The interest rate is commonly used in China as the reference rate for the country’s mortgages.
For example Commercial banks notes in its morning review that lowering China’s five-year prime rate will make it easier to manage Chinese borrowing costs and may increase demand for new loans. The Chinese economy has recently suffered from problems in the country’s real estate sector as well as recurring interest rate hikes.
Futures also anticipate a strong upswing for Wall Street today.
The futures of the S&P 500 general index, which broadly describes the US stock market, rose 0.8 percent just before half past eleven. Futures on the technology-focused Nasdaq 100 Index had risen 1.1 percent and futures on the Dow Jones Index 0.6 percent.