LONDON MARKETS: London Markets Higher, But Gains Pared As ECB's Rate Stance Disappoints
07 June 2019 - 12:00AM
Dow Jones News
By David Morris
London markets stayed positive, but pared gains Thursday amid
some disappointment over the speed of monetary easing in
Europe.
How did markets perform?
The U.K.'s FTSE 100 rose 0.4% to 7,248.17. It had edged up 0.1%
Wednesday.
The pound rose 0.2% to $1.2708, after nudging 0.4% higher
Wednesday.
What's moving the markets?
The European Central Bank on Thursday left interest rates
unchanged
(http://www.marketwatch.com/story/european-central-bank-says-now-plans-to-leave-rates-on-hold-at-least-through-first-half-2020-2019-06-06),
and extended the period it expects rates to remain on hold through
at least the first half of 2020. The ECB had previously indicated
rates would remain on hold through the end of 2019. It also
announced the terms of its third round of targeted longer-term
refinancing operations.
U.S. President Donald Trump tweeted an update on discussions in
Washington, D.C. with representatives of the Mexican government,
saying that "progress is being made, but not nearly enough". The
U.S. will levy tariffs on Mexico starting Monday, barring a
breakthrough.
The International Monetary Fund revised down its GDP
expectations for China to 6.2% for 2019 and 6% for 2020, reflecting
the potential impact of trade tensions with the U.S. Managing
Director Christine Lagarde told Reuters
(https://www.reuters.com/article/us-g20-japan-imf-lagarde/imfs-lagarde-says-tariff-actions-dont-pose-global-recession-threat-idUSKCN1T62Y2?il=0)
that the international body's base case was that tariffs might
dampen growth but would not tip the global economy into
recession.
Which stocks are active?
Rolls-Royce Holdings PLC (RR.LN) shares moved 1.5% higher on
news its pensions unit had struck a GBP4.6 annuity deal with Legal
& General Group PLC (LGEN.LN), the insurance company.
Entertainment One Ltd. (ETO.LN) rebounded 15.1% after issuing a
statement refuting a Variety article saying Mark Gordon, President
and Chief Content Officer of EOne's film and TV unit, was in talks
to exit his role. Shares had fallen 17% Wednesday after the initial
Variety report.
(END) Dow Jones Newswires
June 06, 2019 09:45 ET (13:45 GMT)
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