cloudy.png
Saturday September 26th, 2020 1:40PM

European stocks dented by surge in the euro

By The Associated Press
Related Articles
  Contact Editor

LONDON (AP) — European stock markets fell sharply Tuesday as the euro surged on comments from European Central Bank President Mario Draghi. Shares in Alphabet Inc., Google's parent company will be in focus later after the EU slapped its biggest-ever fine on the internet giant for breaching antitrust rules with its online shopping service.

KEEPING SCORE: In Europe, Germany's DAX was down 0.5 percent at 12,704 while the CAC 40 in France fell 0.7 percent to 5,261. The FTSE 100 of leading British shares was 0.2 percent lower at 7,435. Wall Street looked poised for a soft open with Dow futures and the broader S&P futures down 0.1 percent.

DRAGHI SPEECH: The ECB president gave the euro a big lift after displaying optimism over the future of the economy of the 19-country eurozone. A raft of economic indicators has shown the single currency bloc to be gaining momentum. While not going so far as to say the ECB was ready to rein back its stimulus measures, Draghi did alter his language slightly to the extent that traders think that a change of policy could be coming in the next few months. Though saying the eurozone required "considerable" stimulus that was perceived as a modest change in tone to the previous form of words of "very substantial."

ANALYST TAKE: "While Draghi is among the more dovish policy makers at the central bank, there has been persistent speculation that the ECB will announce further reductions in asset purchases later this year and a more positive assessment of the economy from the President may suggest he's willing to back it," said Craig Erlam, senior market analyst at OANDA.

EURO SPIKES: That's certainly the conclusion in the currency markets, where the euro surged 0.9 percent to $1.1277. The higher currency hurt stocks as traders fretted over its impact on exports and on the prospect of looser monetary policy in the future.

YELLEN'S TURN: How the euro ends the day could hinge on comments later from Federal Reserve Chair Janet Yellen, who is due to address an audience in London on a host of international matters. The Fed has been gradually raising its key interest rate from record lows and hints about the pace of more hikes will be of interest to investors.

GOOGLE FINE: Aside from the central bankers, the focus in the markets has been on the whopping 2.42 billion-euro ($2.72 billion) fine the EU has slapped on Google. The European Commission, which polices EU competition rules, alleges Google elevates its shopping service even when other options might have better deals and said the company "gave prominent placement in its search results only to its own comparison shopping service, whilst demoting rival services." Google has been given 90 days to stop or face further fines of up to 5 percent of the average daily worldwide revenue of parent company Alphabet. Google says it is considering an appeal.

ASIA'S DAY: Japan's Nikkei 225 rose 0.4 percent to 20,225.09 while South Korea's Kospi added 0.1 percent to 2,391.95. Hong Kong's Hang Seng index edged 0.1 percent lower to 25,839.99. China's Shanghai Composite Index added 0.2 percent to 3,191.20. Australia's S&P/ASX 200 slipped 0.1 percent to 5,714.20.

OIL: Benchmark U.S. crude rose 56 cents to $43.95 per barrel in electronic trading on the New York Mercantile Exchange. Brent, the international standard, gained 69 cents to $46.52 per barrel in London.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
European stocks dented by surge in the euro
Global shares mixed, awaiting cues from central bankers
8:43AM ( 4 minutes ago )
The Latest: US military probing reports of strike on IS jail
The U.S. military says it will assess allegations that a coalition airstrike may have killed over 40 prisoners held in an Islamic State-run jail in eastern Syria
8:35AM ( 12 minutes ago )
Syria denies US allegations of coming chemical attack
The involvement of external powers in the Syrian war continued to accelerate as President Bashar Assad's government and Russia dismissed White House allegations that it was preparing a new chemical weapons attack
8:30AM ( 17 minutes ago )
Associated Press (AP)
Senate leaders scramble to save health bill amid defections
Senate leaders are scrambling to rescue their health care bill, in trouble after a budget report said it would leave 22 million more uninsured by 2026
7:45AM ( 1 hour ago )
Trump takes another swipe at CNN following resignations
President Donald Trump is using the resignations of three CNN journalists involved in a retracted Russia-related story to resume his attack on the network's credibility.
7:45AM ( 1 hour ago )
The Latest: Iran official: US travel ban violates nuke deal
The Latest: Iranian lawmaker claims US travel ban is a violation of 2015 nuclear deal between world powers, Tehran
7:17AM ( 1 hour ago )
AP Business
Global shares mixed, awaiting cues from central bankers
Global shares mixed, awaiting cues from central bankers
5:22AM ( 3 hours ago )
Trump says US on brink of become net exporter of energy
With U.S. exports of oil and natural gas surging, President Donald Trump says the U.S. is on the brink of becoming a net exporter of oil, gas and other resources
5:11AM ( 3 hours ago )
Europe's once positive world view of US slips under Trump
Slightly more Europeans now view the United States unfavorably than favorably under President Donald Trump
4:16AM ( 4 hours ago )
AP Business - Economy
Corruption charge increases pressure on Brazil's president
Uncertainty looms in Brazil after President Michel Temer was formally accused of taking bribes
12:03AM ( 8 hours ago )
Oprah picks debut novel 'Behold the Dreamers' for book club
Oprah Winfrey's new book club pick is an acclaimed first novel by Cameroon-born author Imbolo Mbue
11:12AM ( 21 hours ago )
German economic strength gives European markets a lift
Global stock markets have risen after Wall Street rebounded from losses to end the week higher on stronger oil and gas prices
8:27AM ( 1 day ago )
AP Business - Financial Markets
Budget office sees 22 million fewer covered with Senate bill
Congress' nonpartisan budget referee says the Senate Republican health care bill would leave 22 million additional people uninsured in 2026 compared to President Barack Obama's law
4:02AM ( 4 hours ago )
The Latest: 3 GOP senators threaten to oppose health bill
Threats of opposition from three Republican senators are casting doubt on whether GOP leaders have enough support to move ahead on the Senate health care bill
2:33AM ( 6 hours ago )
Dozens of prospective jurors beg off 'Pharma Bro' case
Several prospective jurors have been excused from the federal securities fraud trial of an ex-pharmaceutical company executive because they claimed they couldn't be impartial
12:34AM ( 8 hours ago )
AP Business - Industries
GOP leaders add penalty for lapsed coverage to health bill
Republican leaders have added a penalty for people who've let their insurance lapse to their health care bill
2:37PM ( 18 hours ago )
The Latest: AMA says GOP health bill will harm patients
The nation's largest doctors' group is outlining its opposition to the Senate Republican health care bill
2:16PM ( 18 hours ago )
The Latest: Insurer says cost-sharing will stabilize market
One of the nation's biggest health insurers says the Senate health care bill will "markedly improve" the individual insurance market's stability and moderate premium hikes
2:00PM ( 18 hours ago )
AP Business - Financial Services
The Latest: US military probing reports of strike on IS jail
The U.S. military says it will assess allegations that a coalition airstrike may have killed over 40 prisoners held in an Islamic State-run jail in eastern Syria
8:35AM ( 12 minutes ago )
Syria denies US allegations of coming chemical attack
The involvement of external powers in the Syrian war continued to accelerate as President Bashar Assad's government and Russia dismissed White House allegations that it was preparing a new chemical weapons attack
8:30AM ( 17 minutes ago )
Britain's May demands major investigation after deadly fire
Britain's Prime Minister Theresa May says there must be a "major national investigation" into the use of potentially flammable cladding fitted to high-rise towers across the country after London's Grenfell Tower fire tragedy
8:19AM ( 29 minutes ago )
Rascal Flatts surprises bride and groom at wedding reception
A bride and groom in Wisconsin got some surprise entertainment over the weekend when country music trio Rascal Flatts stopped by their wedding reception
8:18AM ( 29 minutes ago )
Spain wildfire that threatened national park 'under control'
Officials in Spain say that firefighters are working to fully extinguish a wildfire that threatened Donana National Park, a renowned conservation wetland and home to the endangered Iberian lynx
8:12AM ( 35 minutes ago )