European stocks survive the Trump earthquake



Al Ain News Agencies
On Friday’s close, European stocks succeeded in overcoming fears of US President Donald Trump’s infection with the Corona virus, which negatively affected most global stock markets.

European shares closed slightly higher, after a wave of losses in early trading.

The European “STOXX 600” index was supported, which closed higher with hopes of more stimulus in America, and the pressure on the European Central Bank to increase the stimulus after the negative inflation continued.

The European “STOXX 600” index rose 0.3% at the end of another volatile week, which started with a wave of profits in the affected sectors, which helped the benchmark index to post a weekly gain of 2%.

The European stock exchanges began the session with losses of more than 1% after Trump said that he and his wife Melania had contracted the Corona virus and went into quarantine, which increased the uncertainty surrounding the elections scheduled to take place on November 3.

What contributed to the stability of the markets at the close, hopes for more stimulus in the United States, after data showed that job growth slowed more than expected last September in the largest economy in the world.

Meanwhile, inflation in the Euro-Zone increased down into negative territory last month, raising pressure on the European Central Bank to increase stimulus.

Exit negotiations

While the British “Financial Times 100” index rose 0.4% at the end of a busy week regarding Britain’s exit from the European Union.

The negotiations are still stalled at several sensitive files, such as how to manage the upcoming agreement, or also the eternal question about the guarantees demanded by the European Union, especially in the issue of government aid to avoid the emergence of an irregular economy on the other side of the Channel that can impose unfair competition.

Inflation is negative

European Central Bank Vice President Luis de Guindos said on Friday that eurozone inflation would remain negative for the rest of the year, after new data showed price growth reached its lowest level in four years.

“Inflation will be negative for the rest of the year … next year, we hope that it will recover,” de Guindos said in a speech.

The comments could be seen as a slight change in his views, as he had previously expected inflation to be negative or very close to zero for the rest of the year.


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