EUROPE Stocks trade stronger

24 Nov 2022 , 06:59 PM

European stock markets were trading higher around afternoon on Thursday, 24 November 2022, as risk sentiments underpinned by Federal Reserve signals that it was moving towards a slower pace of interest rate hikes as well as increased expectations of monetary easing from Chinas central bank. At 13:10 GMT, the pan European Stoxx 600 index added 0.4% to 440.58. The U.K.s FTSE 100 index added 0.04% to 7,468.42. Frances CAC 40 index added 0.4% to 6,702.24. Germanys DAX index added 0.8% to 14,541.08. Switzerlands Swiss Market index rose 0.6% to 11,159.63. European Stocks advanced on tracking overnight gains in US equities and positive trend in Asian markets, as traders seized on a dovish tilt among Fed officials. A substantial majority of participants judged that a slowing in the pace of increase ?would soon be appropriate? while some members expressed concerns rate hikes might ultimately ?exceed what was required? to tame inflation. The general tone of the members confirmed that the committee was leaning towards moving away from jumbo rate hikes. Stocks also advanced after reports that China will use more monetary tools, including a reduction in the amount of funds commercial lenders keep as reserves, to boost lending. The Peoples Bank of China last cut the ratio on April 25, the only such reduction this year, and twice in 2021, despite rapid signs of deterioration in the economy. Separately, Chinese banks and authorities are ramping up aid to ease a liquidity crunch in the property industry. Monetary easing and adjustments to pandemic-control measures will help restore industrial production and consumer spending. Back to home, shares of Nordex gained after the German company secured a 42MW turbine order from VSB Group for a wind farm project in Poland. Remy Cointreau shares fell as the maker of Remy Martin cognac said the second half would reflect a return to normal consumption trends after two years of truly exceptional growth. Renault Group shares gained as the automaker announced an acceleration of the decarbonization plan for its industrial sites with three strategic partnerships- Voltalia, ENGIE, and Dalkia. ECONOMIC NEWS: German Ifo business-climate index rose to 86.3 points in November from a revised reading of 84.5 points in October. France manufacturing confidence index dropped to 101 in November from 103 in October, largely due to the balance of opinion on the past change in production and the level of the order books. Most Asian stock markets rose on Thursday. Japans Nikkei 225 index jumped 1% in catch-up trade, while Indias Nifty 50 index added 0.5% and Hong Kongs Hang Seng Index added 0.8%. Malaysian stocks surged 2% after Anwar Ibrahim was confirmed as the countrys new Prime Minister, ending five days of political deadlock. On the other hand, Chinas Shanghai Composite index fell 0.2% and Singapores Straits Times Index was down 0.1%. Powered by Capital Market – Live News