News Column

European Stocks Set To Follow Wall Street Higher

August 18, 2014

VIENNA (Alliance News) - European stocks are seen opening higher on Tuesday, tracking gains on Wall Street overnight and in Asia this morning on easing concerns about conflicts in Ukraine and Iraq.

Israel and Palestinian officials have agreed to extend the ceasefire in Gaza for another 24 hours, minutes before a five-day ceasefire, which came into effect last Wednesday, expired Monday midnight. The agreement was reportedly reached during indirect Egyptian-mediated talks for a permanent peace deal between Israel and Palestinians in Cairo.

Following talks between Russia, Germany, France and Ukraine on Sunday, Russia said a dispute over its initiative to send the trucks with humanitarian aid had been settled.

Meanwhile, Ukrainian military claimed that dozens of people, including women and children, have been killed after a convoy of buses carrying refugees fleeing the fighting in eastern Ukraine was hit by rocket fire between the towns of Khryashchuvate and Novosvitlivka located on the main road leading to Russia from the besieged rebel-held city of Luhansk.

While military spokesman Andriy Lysenko alleged that the refugee convoy was struck by mortars and Grad rockets fired by "militants" armed by Russia, his claims were rejected by pro-Russian separatists fighting the Ukrainian government in Kiev.

Elsewhere in the Middle East, Iraqi and Kurdish troops have taken control of the Mosul Dam from the Islamic State group, after 35 airstrikes since Saturday.

In economic releases, investors eye reports on UK inflation and house prices as well as Eurozone current account data in the European session for clues regarding the ECB's future monetary policy. In the New York session, reports on housing starts and consumer price inflation will be keenly watched for further hints on Federal Reserve policy.

Investors keenly await Wednesday's release of minutes from the Federal Reserve's July policy meeting as well as comments from the Fed's summit in Jackson Hole, Wyoming, starting on Thursday to determine if interest rates are going to stay lower for a while.

In domestic corporate news, Fosun International, the investment arm of Chinese conglomerate Fosun Group, is in talks to buy Switzerland-based reinsurer Swiss Re Ltd.'s US life insurance arm, the Bloomberg reported, citing people with knowledge of the matter.

German engineering company Manz Automation AG said it has received an order of double-digit million scales in its Display division, for providing production solutions for the needs of the consumer electronics industry.

The European markets rose sharply on Monday, with hopes for a peaceful resolution to the crisis in Ukraine and gains by Western-backed forces in Iraq underpinning sentiment. The German DAX rallied 1.7%, France's CAC 40 climbed 1.4% and the UK'sFTSE 100 advanced 0.8%.

The major US averages rose about a percent each overnight, with the tech-heavy Nasdaq rising to its highest level in over fourteen years, as investors focused on corporate deal news and reports of diplomatic efforts to broker a cease-fire in eastern Ukraine. In economic news, confidence among US homebuilders, a key driver of economic growth, rose to its highest level in seven months in August due to a strong labor market and declining mortgage reports, the NAHB report showed.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters