Europe Edges Higher; Positive Earnings Help

Global stocks rally on treatment hopes, currencies await ECB

By Administrator_India

Capital Sands

European stock markets edged higher Monday, helped by some positive earnings news amid talk of additional recovery funds for the region.

At 3:35 AM ET (0735 GMT), the U.K.’s FTSE index traded 0.2% higher, France’s CAC 40 was up 0.1%, while the DAX rose 0.4%. The broader based Stoxx 600 Europe index climbed 0.2%.

The Spanish government plans to propose to its EU partners that the bloc create a 1.5 trillion euro ($1.63 trillion) fund to aid recovery in countries worst-hit by the coronavirus crisis, the El Pais newspaper reported on Monday, citing an internal document.

Spain’s Prime Minister Pedro Sanchez plans to make a formal proposal to his EU colleagues during a summit on Thursday, the newspaper said.  European Union’s Economics Commissioner Paolo Gentiloni that aid worth around 1.5 trillion euros could be needed to tackle the coronavirus crisis.

In corporate news, Vivendi  shares climbed 3% after the French media conglomerate reported Monday a 4.4% growth in revenue in the first quarter, led by its Universal Music division.

Also on the up was Koninklijke Philips, despite pulling its forecast for 2020 as the virus outbreak resulted in its first quarter profit falling by three quarters. The Dutch technology company added that the virus is expected to affect all geographies in the second quarter but sees a modest return to profitability in the second half. Philips shares climbed 3.6%.

Oil prices have remained weak Monday, as producers continue to grapple with a supply glut.

At 3:35 AM ET, U.S. crude futures traded 5.6% lower at $23.63 a barrel. The international benchmark Brent contract fell 2.5% to $27.39.

Elsewhere, gold futures fell 0.7% to $1,687.80/oz, while EUR/USD traded at 1.0862, down 0.1% on the day.

Author: Administrator_India

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