(SIX) European stock markets rose even before the ECB’s monetary policy statement
on Wednesday to then top of the day for Governor
Mario Draghi’s speech. Most interesting was how the interest in German
Government bonds from Draghi Conference took off upwards, and
reached a new annual high. The latter is probably the explanation why
the interest rate-sensitive property sector was today’s weakest cards. Better
went there for the listed sectors such as retail and banking.
“You can blame the thin liquidity strengthens divestments
but it is, as Draghi says, time to get used to the higher
volatility “, commented bond price the loss of Brian Edmonds,
interest rate product manager at Cantor Fitzgerald, Dow Jones Newswires.
In addition, continued uncertainty characterize it that came out around the
protracted negotiations between Greece and its international
lenders.
The ECB’s key interest rate was left unchanged as expected at 0.05 percent
while ECB Chairman Mario Draghi during his customary
press conference tried casting mode in the market.
Draghi said among other things that the ECB’s asset purchase program to 60
billion per month progressing well and repeatedly that the program
is planned to continue until at least the end of September in 2016.
More unexpected was the President of the ECB commented on the low
interest rates prevailing means that markets should be prepared for higher
volatility, but volatility does not alter the ECB
monetary policy stance. This comment triggered under certain
analysts afternoon’s interest rate increases in, among other things German
government securities.
European Commission President Jean-Claude Juncker, will tonight
discuss the state of Greece’s reform negotiations with Greek
Prime Minister Alexis Tsipras. European Commission spokeswoman Mina
Andreeva has announced that no final agreement expected
achieved tonight.
According negotiation leaks to the Financial Times will Greece
international lenders now be willing to ease its demands
regarding Greece’s primary budget surplus, thus a positive
budget balance before interest payments. It requires, according to the information now
a surplus of 1 per cent in 2015, an easing from previous
requirement of 3 percent surplus.
The afternoon’s comments from the touchline includes German
Finance Minister Wolfgang Schäuble did not see that the proposals of Greece
justifies optimism while the French president Francois
Hollande says that a potential solution should only be a few hours
away.
Greece has a first maturing IMF payment of approximately $ 300
million euros already this Friday. The largest government party Syriza
spokesman Nikos Filos ruled today that this payment will not
conducted if the Greeks do not see the prospect of being able to reach a
financing agreements.
On the company front-end Austrian special steel manufacturer
Voestalpine 8.2 percent in Vienna after having reported a better than
expected full-year results and raised the dividend by 5 cents to 1.00
euros per share.
French mobile operator Orange, -0.2 percent, can imagine
acquire European competitors say Europe boss Gervais
Pellissier, according to Financial Times. Potential buy candidates
includes according to the article Italian Telecom Italia, +0.4 percent;
Dutch KPN, -0.1 percent, and the Belgian Belgacom, +0.9 percent.
The vehicle manufacturers majförsäljning in the US market
it was announced yesterday. BMW’s US sales rose 5 percent, then
shares have risen 1.1 percent. Daimler-owned Mercedes sales rose 11
percent and the share was up by a marginal 0.2 percent. Volkswagen
sales rise 8 per cent and the share climbed 0.4 percent.
Market quotations at closing
Indices Market Listing Today This year
Stoxx 600 Europe 396 -0.1% + 15.6%
Stoxx 50 Europe 3,404 -0.2% + 13.3%
The FTSE 100 London 6950 + 0.3% + 5.9%
DAX 30 Frankfurt 11 420 + 0.8% + 16.5%
The CAC 40 Paris 5034 + 0.6% + 17.8%
SMI Zurich 9.253 + 0.5% + 3.0%
IBEX 35 Madrid 11 268 -0.0% + 9.6%
FTSE MIB Milan 23 609 + 0.1% + 24.2%
SIX Nordic Nordic 125 + 0.6% + 16.9%
Johan Eklund, tel +46 31 350 64 87
mailto: johan.eklund@six-group.se
www.blogg.six.seSIXNews
SIX News
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