Egypt, Japan discuss economic ties, preparations for TICAD conference    Real Estate Developers urge flexible land pricing, streamlined licensing, and dollar-based transactions    Madinet Masr in talks for three land plots in Riyadh as part of Saudi expansion    Egypt's PM tells Palestinian PM that Rafah crossing is working 24/7 for aid    Egypt's Sisi pledges full state support for telecoms, tech investment    EGP inches down vs. USD at Sunday's trading close    EGX launches 1st phone app    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt prepares to tackle seasonal air pollution in Nile Delta    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Upbeat earnings, hopes of more ECB stimulus lift mood in Europe
European shares up and euro down on expected ECB corporate bond-buying and good U.S. company earnings
Published in Ahram Online on 22 - 10 - 2014

European shares edged up and the euro hit a one-week low against the dollar on Wednesday, driven by upbeat company earnings results and hopes of corporate bond buying by the European Central Bank.
Shares in Swiss engineering group ABB gained 3.1 percent after posting a bigger-than-expected rise in orders, helped by demand from the oil and gas industries. Outdoor equipment maker Husqvarna (HUSQb.ST) surged 6.1 percent after reporting a rise in earnings that was above forecasts.
The market moves were tentative as investors remain nervous about the state of the global economy, with the euro zone a key soft spot. Such worries may intensify on Thursday when regional business surveys are due.
Several sources told Reuters on Tuesday the ECB was considering buying corporate bonds on the secondary market and may make a final decision as soon as December with a view to begin purchases early next year.
That would expand the private sector asset-buying program the ECB began on Monday with the aim of giving the economy a shot in the arm and safeguarding the euro zone from deflation, which has already gripped five of its 18 members.
The FTSEurofirst 300 .FTEU3 index of top European shares was up 0.1 percent at 1,300.72 points, after surging 2.1 percent on Tuesday. The euro EUR= hit a one-week low of 1.27025 before bouncing to 1.2719, virtually flat on the day.
"The general takeaway here for a lot of people is that it shows commitment from the ECB trying to find ways to expand its balance sheet. And also it shows ... the ECB wanting to pick up the pace," said Paul Robson, a currency strategist at RBS.
In the United States, Apple Inc (AAPL.O) and Texas Instruments (TXN.O) posted stronger-than-expected quarterly earnings, lifting the tech-heavy Nasdaq Composite Index .IXIC more than 2 percent on Tuesday.
That, together with data showing a stronger-than-expected 2.4 percent rise in U.S. domestic home resales last month provided evidence that the U.S. economic recovery maintained some momentum.
"Sentiment turned positive overnight on good earnings reported by U.S. corporates, much better than expected U.S. existing home sales data and the rumors that the ECB is considering the option of buying corporate bonds in the secondary market," said Daniel Lee at Credit Agricole.
Some hopes were also coming from Japan, where trade data showed exports rose 6.9 percent in September from a year earlier, the fastest pace in seven months.
INFLATION NEXT
The upbeat signals from the United States bolstered the dollar, although traders were wary of U.S. inflation data due at 8:30 a.m. EDT.
Economists expect annual core CPI inflation to stay flat at 1.7 percent in September, and a cooler reading would add to speculation that the Federal Reserve will wait longer before raising interest rates.
The consensus view is that the U.S. central bank will decide at its Oct 28-29 policy meeting to wrap up its third round of asset purchases with new money, known as quantitative easing. But short-term interest rates futures imply markets do not expect the Fed to hike rates until late 2015.
The dollar inched lower on the day against the yen JPY= to 106.88 yen.
Euro zone bond yields extended their falls on the back of the ECB's plans. German 10-year Bund yields DE10YT=TWEB, which set the standard for euro zone borrowing costs, fell 1 basis point to 0.86 percent. Peripheral bond yields fell by more.
"The news of bond buying had quite a beneficial effect on the non-German bond markets, for good reason, so spread narrowing was quite substantial and today there is still some after-effect of that," said KBC strategist Piet Lammens.
http://english.ahram.org.eg/News/113705.aspx


Clic here to read the story from its source.