On Friday, the 6th of September, a majority of European stock exchanges extended their gains into third straight day, as China’s latest move to shore up monetary stimulus amid a shrinking factory activity had countered a lower-than-anticipated US non-farm payroll report alongside a plunge in the German industrial output.
Aside from that, a widely expected interest rate cut by Federal Reserve as early as this month had fuelled up investors’ optimism. As a matter of fact, it had been a strong weak for the European stock indices, while investors had witnessed a positive turn of event in Hong Kong, Britain, Italy alongside a feeble signal to reach a resolution of the US-China trade deal as early as by next month, when leading negotiators of two sides would join at a high-stake meet in Washington.
Meanwhile, expressing a modest optimism over outlooks of European shares in a near-term, a market analyst at City Index in London, Ken Odeluga said, “European markets were trading higher before the jobs data came out and reacted just slightly lower to that.
The China news clearly had a positive effect on risk appetite, but it’s quite in-line with well-telegraphed intent from Beijing to provide stimulus to stabilize growth”. Quoting statistics, on Friday’s’ (September 6th) market wrap-up, London’s FTSE 100 added 0.15 per cent to 7,282.34, Germany’s trade-sensitive DAX rose 0.54 per cent to end up the day at 12,191.73 despite a dwindling factory activity in Germany, meanwhile, French CAC 40 added 0.19 per cent to round off the day at 5,603.99.
Elsewhere in Europe, Madrid’s IBEX 35 ended the day a penny down to 8,990.10, while Spain’s FTSE MIB winded down the day little changed at 21,947.33.