EUROPE MARKETS: London Markets Edge Down Ahead Of ECB, Fed
19 Juni 2019 - 2:11PM
Dow Jones News
By Dave Morris
London stocks fall as investors looked to central bank meetings
in Europe and the U.S.
How did markets perform?
The U.K.'s FTSE 100 sank 0.2% to 7,427 after climbing 1.2%
Tuesday.
The pound rose 0.2% to $1.2582, erasing Tuesday's 0.1% loss.
What's moving the markets?
The U.S. Federal Reserve and the European Central Bank will both
make announcements about policy Wednesday. Investors in Europe are
already digesting ECB President Mario Draghi's speech Tuesday
signalling the bank stands ready to introduce fresh stimulus
measures if economic conditions do not improve. The outlook for the
Fed is more ambiguous, and the week has seen intense debate about
whether it will signal cuts to its policy rate. While a survey of
brokers by FactSet sees the Fed introducing cuts at this meeting,
some think it more likely the central bank will keep its powder dry
ahead of the G-20 summit.
U.S. President Donald Trump gave fresh hope to investors as he
announced on Twitter on Tuesday that he would meet Chinese
President Xi Jinping at the G-20 summit
(http://www.marketwatch.com/story/trump-today-president-sets-extended-meeting-with-xi-as-he-rebukes-draghi-over-possible-new-stimulus-2019-06-18)
next week in Osaka, Japan. Trade negotiations had been stalled
since mid-May.
In economic data, U.K. inflation came in slightly above
expectations. CPI core inflation for May was 1.7% higher year over
year, versus 1.6% expected. In Germany, PPI inflation missed the
consensus, rising 1.9% in May year over year, short of the 2.1%
expected.
Which stocks are active?
Saga PLC (SAGA.LN) shares plummeted 12.3% after the travel and
insurance company announced a trading update and warned that the
travel market is highly challenging due to political
uncertainty.
British Airways parent International Consolidated Airlines Group
SA (IAG.LN) announced at the Paris Air Show that it had ordered 200
of Boeing's troubled Max 737 jets. The move is a massive vote of
confidence in the aircraft model, which was grounded following two
crashes involving the same model. Shares in IAG were down 4.4%.
(END) Dow Jones Newswires
June 19, 2019 07:56 ET (11:56 GMT)
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