European Stocks Rise to Six-Year Highs, Utilities Slide
May 30, 2014 4:59 am
European stocks were in positive territory on Thursday as it held near six-year highs as the support from potential investors flow in at the anticipated economic hike from the European Central Bank.
On the other hand, utilities dipped after Citigroup cut its ratings on Enel and other various southern European stocks. The bank remarked that regulatory pressures and increase in competition might affect the earnings of the company.
STOXX Europe 600 Utilities Index declined 0.2% due to the reduction of Citigroup while STOXX 600 Index rose a 0.1%. 2014 saw the utilities increase 13% to make it one of the top-performing sectors in the market.
Pan-European FTSEurofirst 300 Index finished 0.1% higher to 1,379.05 pips. It was within the reach of the near six-year high of 1,380.52 pips which it achieved this week. It has increased 5% since the beginning of 2014. Germany’s DAX was unchanged at 9,938.90 pips after its record high point of 9,957.87 pips on Wednesday. France’s CAC was also unchanged at 4,530.51 pips. Both DAX and CAC incurred a 4-5% increase since the start of the year.
European Central Bank President Mario Draghi is anticipated to make the announcement on June 5 to ease the monetary policy by cutting interest rates and introducing other methods to remedy the low inflation and uphold the economy. This expectancy has allowed Europe’s stock market to keep a steady incline ever since the start of the year.
Ava’s chief market analyst, Naeem Aslam commented that majority of investors are still buying equities on expectations of the ECB announcement but he warned that the outcome of the bank’s meeting might not be as clear-cut as some people think.
The material has been provided by InstaForex Company – www.instaforex.com
European stocks were in positive territory on Thursday as it held near six-year highs as the support from potential investors flow in at the anticipated economic hike from the European Central Bank.
On the other hand, utilities dipped after Citigroup cut its ratings on Enel and other various southern European stocks. The bank remarked that regulatory pressures and increase in competition might affect the earnings of the company.
STOXX Europe 600 Utilities Index declined 0.2% due to the reduction of Citigroup while STOXX 600 Index rose a 0.1%. 2014 saw the utilities increase 13% to make it one of the top-performing sectors in the market.
Pan-European FTSEurofirst 300 Index finished 0.1% higher to 1,379.05 pips. It was within the reach of the near six-year high of 1,380.52 pips which it achieved this week. It has increased 5% since the beginning of 2014. Germany’s DAX was unchanged at 9,938.90 pips after its record high point of 9,957.87 pips on Wednesday. France’s CAC was also unchanged at 4,530.51 pips. Both DAX and CAC incurred a 4-5% increase since the start of the year.
European Central Bank President Mario Draghi is anticipated to make the announcement on June 5 to ease the monetary policy by cutting interest rates and introducing other methods to remedy the low inflation and uphold the economy. This expectancy has allowed Europe’s stock market to keep a steady incline ever since the start of the year.
Ava’s chief market analyst, Naeem Aslam commented that majority of investors are still buying equities on expectations of the ECB announcement but he warned that the outcome of the bank’s meeting might not be as clear-cut as some people think.
The material has been provided by InstaForex Company – www.instaforex.com
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