European stocks rose on Wednesday, as the euro pulled back from a two-year high and rapid optimism for equities on Wall Street.
It fell 0.5% against the dollar to reach its previous strong level of $ 1.20 on Tuesday after May 2018.
It jumped 2% on Tuesday after falling 0.3%. German DAX DAX,
And French CAC 40 px 1,
Every 2% and the FTSE 100 also rose on UKX,
A stretch for the euro was attributed to comments by European Central Bank chief economist Philip Lane, who said that “the euro-dollar rate matters.”
According to Bloomberg, Lane said in an online conference, “If there are forces forcing the euro-dollar rate around, that feeds into our global and European forecasts, and in turn our monetary policy settings Feeds into. ”
“These comments are the first push against appreciation in this EURUSD cycle and do not come as a surprise. However, our central case is that in a note to ECB customers, Gizem Kara, economist at BNP Paribas in London, said “deposits will stick to verbal intervention rather than facility rate cuts.”
The economist said “the risk-yield of cutting is not yet favorable” and if the market believes the ECB has used its firepower, the currency could rise even more.
Data released on Tuesday showed that the eurozone’s consumer prices declined for the first time in four years in August.
Optimism on Wall Street also fed through Europe. Nasdaq Composite Comp,
And the S&P 500 SPX,
It closed at record highs on Tuesday, and opened on intraday records on Wednesday.
Enthusiasm for technology stocks in Europe was evident, with stock in the German trading software group SAP SAP.
Up 2.4%, while semiconductor equipment manufacturer ASML Holding ASML,
With Roche holding ROG, investors piled huge amounts of pharmaceutical stocks
1.4% and AstraZeneca AZN,
Luxury goods and apparel companies LVMH Moet Hennessey joined the rally with Louis Vuitton climbing 3.4%, Kering around 5%, and Adidas up 4%.
And RI, the pernode record in stock
Leaped 2.6%. The beverage maker reported a decrease in profits and sales due to the epidemic, and said it incurred a € 1 billion ($ 1.19 billion) loss fee. But the benefits still beat the forecast as cost control measures have declined.
BDEV shares the bairat development
The biggest beneficiaries of Stoxx 600 were near the top, 8.4%. The UK housekeeper said the gains in fiscal 2020 have nearly halved due to the epidemic.
Richard Hunter, head of markets for Interactive Investor, said the company was performing vigorously “before the epidemic,” and there are some signs that recovery is already underway after the full opening of its sites in late June.
Following the latest survey by the Nationwide Building Society, home builders gained momentum in August due to records of all-time high growth, demand for pent-ups and a low mortgage rate of fuel. Tailor Wimpey TW, shares of rival home builders
And Persimmon PSN,
Rose more than 5%.