On Tuesday, the 16th of July 2019, an unprecedented clouding of German investors’ morale alongside fresh Brexit woes had led to a hesitant start to European bourses, while the British currency had plunged to a fresh six-month-low figure against euro and a two-year-low to $1.2411 against American dollar, a level last seen on April 13th, 2017, but European indices had rebounded robustly at the later part of the day over optimism of a dovish ECB.
German Zew Survey indicator released during early morning European trading hours had revealed that the investors’ mood in the Europe’s largest and world’s fourth largest economy had deteriorated more than expected in June, while the survey had indicated towards an unresolved trade dispute between United States and China, alongside stepped-up tensions in the Gulf over Tehran issue.
Followed by the reveal of the report, Germany’s 10-year bond yield had entered into the reds at negative 0.316 per cent, while underlying picture of eurozone appears to be mixed, as gains in healthcare and aviation stocks had headed off losses of automotive and telecoms, while the regional pan-European STOXX 600 had treaded water.
Expressing an out-and-out optimism over a dovish ECB outlook, an investment director at Aberdeen Standard Investments, Gerry Fowler said, “The market is waiting for what the ECB will do, followed by what the Fed will do, and in the meantime there is still this undercurrent of waiting for some of the earnings season results to come out”.
Quoting statistics, London’s FTSE 100 had wrapped up the day 0.63 percent at 7,579.38 and Frankfurt’s DAX rounded off the day 0.46 percent higher to 12,443.92, while French CAC 40 added 0.72 percent to 5,618.15.
Meanwhile, Euro was down by 0.35 percent to $1.1218 against American dollar, while Pound Sterling had been hovering near more than two-year-low against its American counterpart to $1.2412, down by 0.83 percent.