LIVE MARKETS-Central banks support bull run, Germany's Ifo eyed
Aug 27 - Welcome to the home for real-time coverage of European equity markets brought to
you by Reuters stocks reporters and anchored today by Helen Reid. Reach her on Messenger to
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CENTRAL BANKS SUPPORT BULL RUN, GERMANY'S IFO EYED (0555 GMT)
Markets were mainly relieved on Friday that Powell kept to guidance of only "gradual"
interest rate hikes.
"Some traders had clearly positioned for Powell to use Jackson Hole as a signpost for
tighter policy but it never came," says LCG's Jasper Lawler.
China's central bank also provided some support for the yuan by adjusting its methodology
for fixing the currency's daily midpoint, in a bid to keep it stable amid broad dollar strength
and a depreciation of roughly 5 percent since the start of the year.
On the economic front today we've also got Germany's Ifo business climate index.
"While uncertainty is expected to remain high in the coming months (Italy, Brexit, EM, trade
protectionism), we expect the underlying domestic economy to continue delivering resilient
activity data, something that should keep the Ifo at a relatively high level compared with its
long-term average and other business surveys," say Societe Generale (Swiss: 519928.SW - news) analysts.
(Helen Reid)
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BULLISH FED SET TO POWER EUROPEAN STOCKS UP (0534 GMT)
European stocks are likely to be boosted by a bullish Fed and strong Asian trading session
today as the absence of UK markets for a bank holiday thins trading out.
The DAX is called 45 points higher at 12,439 and the CAC 40 is seen opening 22 points higher
at 5,454, according to London Capital Group.
Traders will have digested Fed Chairman Powell's speech at Jackson Hole in which he said the
economy was strong, helping drive the S&P 500 and Nasdaq Composite to all-time highs.
Asian shares rose on Monday, boosted by record Wall Street highs after reassuring comments
from the Federal Reserve's chairman, and as stock markets in China gained after the country's
central bank tweaked its management of the yuan.
A smattering of headlines that could shake up some stocks today:
Bayer (IOB: 0P6S.IL - news) , J&J's heart drug Xarelto fails trial to widen use
Equinor raises Sverdrup field resource estimate, cuts cost forecast
Lundin Petroleum (LSE: 0NNR.L - news) found more oil at Norway's Rolvsnes prospect
Ems Chemie Holding H1 Net Income Up At CHF 260 Mln
Chargeurs Fashion Technologies Closes Acquisition Of Pcc Interlining
(Helen Reid)
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(Reporting by Helen Reid, Danilo Masoni, Julien Ponthus and Kit Rees)