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European Stock Higher; Raised ECB Forecasts Generate Optimism


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investing newStock Markets30 minutes ago (Sep 13, 2021 04:02AM ET)

European Stock Higher; Raised ECB Forecasts Generate Optimism
© Reuters.

By Peter Nurse

Investing.com — European stock markets traded higher Monday, with investors buying into the idea of a strong economic recovery in the region following last week’s European Central Bank’s policy decision.

At 4 AM ET (0800 GMT), the in Germany traded 0.7% higher, the in France rose 0.5% and the U.K.’s climbed 0.5%.

The ECB decided last week it was in a position to slow down its in the fourth quarter, and at the same time it raised its growth and inflation projections for this year and beyond as the Eurozone economy recovers quicker than expected.

Still, ECB President Christine Lagarde was eager to stress that the move wasn’t the start of tapering, suggesting the central bank’s monetary policy will remain accommodative for some time to come.

That said, investors will focus on comments from the Chief Economist Philip Lane, in particular, this week for more insights into the thinking at the central bank.

The latest inflation releases from the and the on Tuesday will also be studied carefully.

In corporate news, Rolls-Royce (OTC:) stock rose 1.1% after the British engineering company announced plans to sell its stake in AirTanker Holdings, the owner of 14 A330 refuelling jets, for 189 million pounds ($261 million), in its latest disposal aimed at reducing debt.

German online pet supplies’ retailer Zooplus (DE:) stock jumped 7.8% after Hellman & Friedman raised its takeover offer for the German online pet supplies’ retailer, while Associated British Foods (OTC:) stock dropped 2.9% as quarterly sales at its key Primark unit were lower than expected.

These gains in Europe came despite losses in Asia earlier Monday, following news of fresh regulatory crackdown on Chinese firms. Additionally, Chinese property developer Soho China (HK:) slumped after a takeover deal by Blackstone Group (NYSE:) fell through, while the Financial Times reported Beijing is considering breaking up Alipay, the payments app owned by Ant Group.    

Crude prices advanced Monday, posting a one-week high, with supply from the important U.S. Gulf of Mexico region still impacted by the damage from Hurricane Ida more than two weeks after the event.

The Organization of Petroleum Exporting Countries is expected later Monday to release its latest monthly assessment of worldwide conditions, with the global growth of Covid-19 cases likely to weigh on their future demand prediction.

By 4 AM ET, futures traded 0.8% higher at $70.27 a barrel, while the contract rose 0.7% to $73.45. Both contracts reached their highest level since Sept. 3 earlier in the session.

Additionally, fell 0.1% to $1,791.05/oz, while traded 0.3% lower at 1.1778.

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