Earnings relief fuels gains in Europe, no surprise from Draghi’s last act

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Earnings relief fuels gains in Europe, no surprise from Draghi’s last act

Having had to mingle with no fireworks from departing ECB Chair Mario Draghi’s last policy meeting on Thursday, the 24th of October 2019, upbeat Q3 earnings’ report from a basket of German heavyweights alongside British drugmaker AstraZeneca had stoked European Shares to post their sturdiest closure since January 2018.

On Thursday (October 24th), despite any major boost to policy, ECB’s Draghi kept the doors to easy money in forms of loans wide open for small- and medium-scale businesses, which had added to investors’ optimism as well aside from a raft of robust Q3 earnings’ reports, while Frankfurt’s GDAXI spiked to a 16-months high, pulled higher by a 3.4 per cent gain of the world’s largest chemical company, BASF, following its confirmation of an even annual outlook despite slowdown bubbles.

Besides, the regional pan-European stocks index STOXX 600 rose 0.6 per cent to reach its strongest closing high in more than one year and a half, while referring to a bit of blue sky associated with export-oriented stocks alongside big-league automakers likes of Daimler AG, a deputy chief investment officer at London-based firm Brooks Macdonald, Edward Park said, “We’re seeing a bit of blue sky rather than the torrent of negativity that has generally been associated with both automotive and exporters.

Stock markets are reacting more favourably to those that are beating expectations or at least guiding toward a more positive future. ” Citing statistics, on Thursday’s (October 24th) market wrap-up, London’s FTSE 100 gained 0.93 per cent to 7,328.25, Frankfurt’s DAX 30 surged 0.58 per cent to 12,872.10, while Euronext Paris’s CAC 40 ended down the day with little change in extended trading after falling as much as 0.41 per cent to 5,664.68 on Thursday’s (October 24th) market round off.

Elsewhere in Europe, Madrid’s IBEX 35 ended down the day a penny higher to 9,391.80, while Italy’s FTSE MIB rose 0.63 per cent to 22,492.13 on Thursday’s (October 24th) market wrap up.