Leading stock indexes of Europe on Tuesday, growing ahead of the opening Thursday in the American town of Jackson hole annual Symposium of the U.S. Federal reserve, which invited representatives of the world’s Central banks. On Friday, a scheduled speech by fed chair Janet Yellen and ECB President Mario Draghi. However, experts do not expect from them any meaningful statements about the prospects of monetary policy.
By 15:45 GMT the pan-European Stoxx Europe 600 rose 0.7%, compared with yesterday’s closing level against the background of rising British FTSE-100 index at 0.85%, Germany’s DAX down 1.1 PCT, France’s CAC 40 – 0.8%.
Among leaders of growth on Tuesday was the sector basic materials, supported by higher prices on the metals market. In particular, the copper price reached its highest level in three years, while zinc prices were approaching ten-year highs. The Stoxx Europe 600 Basic Resources rose nearly 2%.
Shares of the mining company BHP Billiton rose 3.5% after it reports plans to sell operating division in the United States, engaged in projects for oil and gas.
Shares of rival BHP company Antofagasta PLC added 2.6% after it reports a substantial increase in profits and revenues for the first half that was one of the reasons for the increase of the dividend to 10.3 cents per share, from 3.1 cents a year earlier.
Capitalization the second largest in the UK house-building company Persimmon has increased by 1.2% after data showed about 30% growth in profits in the first half compared to the same period last year. However, the company warned that its cautious approach to the issue of buying new land for building, given the continuing uncertainty surrounding Brexit.
Shares of British financial services company Provident Financial fell by nearly 70% after the news of the resignation of its Executive Director, Peter crook, as well as statements about the impossibility of dividend payments this year in connection with expected in the third quarter net loss of between 80 million to 120 million pounds.
Published today, macroeconomic data of the Eurozone have exerted some pressure on the Euro. EUR/USD to the current time fell to around 1.1758 compared to 1.1817 on Monday evening, reacting in particular to the report of the ZEW Institute, showing the decline in the index of business expectations in Germany in August to 10.0 vs 17.5 in July. According to analysts, the decline is due to weakening of business activity in the summer holidays in Europe and ahead of the September parliamentary elections in Germany.
Later this week will be released preliminary data for August indexes of business activity in the service sector and the manufacturing sector in Germany (Wednesday), the index of business sentiment German Ifo (Friday) and the final German gross domestic product data for the second quarter (Friday).
The UK government today announced the first in 15 years the state budget surplus in July amounted to 0.8 billion pounds. However, these data did not affect the dynamics of the British pound, depreciating in tandem with the US dollar by 0.6% to 1.2820.
Prepared using materials MarketWatch and CNBC.