News Column

European Stocks Sit Still Ahead Of Pivotal ECB Decision

September 2, 2014

BRUSSELS (Alliance News) - European stocks were little changed for a second day in a row Tuesday, with markets cautiously awaiting this week's crucial European Central Meeting.

The ECB on Thursday may announce additional monetary stimulus to stoke inflation and the sluggish euro zone economy.

Although recent data suggests that further quantitative easing is a no-brainer, the ECB has been reluctant to push ahead with ultra-easy policies.

The prices of goods from euro zone factories resumed their decline in July, according to official data released today.

Producer prices fell 0.1% from June, and were down 1.1% from July 2014.

The Euro Stoxx 50 index of eurozone bluechip stocks rose 0.11%. Germany's DAX inched a few points higher, while France's CAC 40 and the FTSE 100 were down fractionally.

Commerzbank, Allianz and BNP Paribas led gains among big banks.

Continental added 1.5%, even as Exane BNP cut the stock to "Neutral" from "Outperform."

UBS reportedly gave a positive recommendation on Vallourec. Shares rose 5%.

In London, Weir Group rose 2.5%. Credit Suisse raised the stock to "Outperform" from "Neutral."

DCD Media PLC. confirmed that it has agreed terms to sell its subsidiary Matchlight Limited to the existing management team. The stock rose 1%.

In economic news from the US, activity manufacturing sector unexpectedly grew at an accelerated rate in the month of August, according to a report released by the Institute for Supply Management on Tuesday, with the index of activity in the sector climbing to a three-year high.

The ISM said its purchasing managers index climbed to 59.0 in August from 57.1 in July, with a reading above 50 indicating growth in the manufacturing sector.

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Source: Alliance News

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