Stocks in Europe rebound as Draghi hints at rate cuts

Tuesday, 18. June 2019 10:43

Equity traders cheered on Tuesday and stock indexes swung from losses to post substantial gains as European Central Bank President Mario Draghi took a major dovish shift and suggested interest rates may need to be lowered deeper from the already unseen territory and that policymakers should implement easing measures again. However, his comments included a pretty grim outlook as he pointed to low inflation, geopolitical instability, protectionism and the fragility in the emerging markets.

The euro weakened a little while a broad range of assets including safe havens like precious metals and sovereign bonds surged.

The FTSE 100 was 0.65% higher in London at 10:40 am CET. Antofagasta was the best stock, adding 2.77%. The German DAX jumped 0.72% led by Wirecard's 2.18% rally. The CAC 40 climbed 1.06% as Accor jumped 2.54% to the top of the chart. Gold added 0.5% to trade at $1,346.34 per ounce. The euro slipped 0.2% to $1.11954 and 0.13% to £0.89388.

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