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European shares hit 6-week highs after Fed spurs rate cut hopes

Published 06/20/2019, 03:24 PM
Updated 06/20/2019, 03:30 PM
European shares hit 6-week highs after Fed spurs rate cut hopes

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
June 20 (Reuters) - European stocks rose to six-week highs
in early deals on Thursday, as signs Brussels will hold off on
disciplinary action over Italy's budget added to the latest
signals of monetary stimulus on the way from the world's big
central banks.
The Federal Reserve pointed the way to a cut in interest
rates as soon as July on Wednesday, following up on a
surprisingly strong warning from European Central Bank chief
Mario Draghi earlier this week that more action was possible.
Euro zone and German bond yields tumbled and the
pan-European STOXX 600 index .STOXX rose 0.6% by 0706 GMT,
with interest rate sensitive banking stocks .SX7P
underperforming.
Adding pressure to the banking sector, Deutsche Bank AG
DBKGn.DE slipped 0.6% after a report U.S. federal authorities
are investigating whether the German lender complied with laws
meant to stop money laundering and other crimes. Italy's FTSE MIB .FTMIB rose 0.72% and its banking index
.FTIT8300 gained 0.43% after officials said the European
Commission was unlikely to recommend further steps next week in
disciplinary procedures over the country's rising debt.

Germany's DAX .GDAXI hit its highest level since May 3,
helped by software company SAP SAPG.DE advancing 1.5% after
arch-rival Oracle ORCL.N forecast current-quarter profit above
estimates.

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