THE EUROPEAN EXCHANGES ODD IN SESSION START
PARIS (Reuters) – The main European stock markets opened on an irregular rating Monday with Frankfurt which benefits from a surge of its power companies while Paris and London experiencing profit taking after their good performance last week.
The CAC 40 index drops 0.15% to 4694.16 points toward Paris 7:25 GMT, after rising by 5.3% over the entire last week which was its highest weekly gain since January. The London FTSE-100, which took 4.7% last week, an unprecedented performance since 2011, gives the same 0.41% but the Dax gained 0.48% in Frankfurt, supported by E.ON and RWE.
Milan 0.25% ahead of the same and the Swiss SMI 0.14%.
The EuroStoxx 50 index of eurozone remains just in the positive (+ 0.02%) while the FTSEurofirst 300 nibbles 0.05% to 1433.32 points remaining near its highest one month reached Friday.
In Frankfurt, E.ON and RWE bound respectively 8 and 10%, the largest increase in nearly seven years. The German Economy Ministry announced Saturday the stress tests results showing that both groups are able to bear the cost of shutdown of nuclear power in the country. Societe Generale, banking on a rebound, raised its recommendation on RWE from “hold” to “buy.”
The pan-European index utilities 1% takes in stride, second best performing sector after automotive (+ 1.75%), which continues its rebound under the Fiat Chrysler Automobiles pulse.
The Turin manufacturer earns 2.6% in Milan after unveiling the terms of the setting Bourse his Ferrari subsidiary.
Credit Suisse (+ 2.3%) is at the top of the Stoxx 50 rises in response to a newspaper article suggesting possible future cost reductions. Deutsche Bank (+ 1.4%) also stands as Bloomberg mentions the possibility of a sale of the UK subsidiary Abbey Life.
The rise of emerging markets and the statements of Mario Draghi , President of the European Central Bank (ECB), suggesting further monetary stimulus, continue to support global markets after their strong performance in the past week.
The Tokyo Stock Exchange was closed Monday but other Asian markets have mostly continued their upward trend fueled by the rebound in commodities and the sudden slack of the dollar, which remains on the defensive after the postponement of rate hike expectations in the United States.
The Shanghai Stock Exchange ended with a gain of 3.29% and the MSCI Asia-Pacific excluding Japan, up 11% since the beginning of the month, is still grants 0.6% at the time of the European opening.
The yuan on his side climbed to 6.3293 per dollar, its highest level since its surprise devaluation of August 11.
Regarding the eurozone, Mario Draghi reiterated Friday that the ECB was ready to change the size, composition and the duration of its assets to support credit growth and if that purchase program was needed.
The oil and commodities remain well oriented with Brent crude up 0.8%, above the 53 dollars a barrel, and Thomson Reuters CRB Index of Contents first still takes 0.7% after last week found its best levels since July.
(Veronique Tison for the French service, edited by Juliette Rouillon)
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