Wed, 23 Oct 2019

European stimulus and trade optimism lift Wall Street

Lola Evans
13 Sep 2019, 06:35 GMT+10

NEW YORK, New York - U.S. stocks made modest gains on Thursday, following a strong performance on European bourses.

The ECB dropped official interest rates in Europe by 10 basis points, as widely expected, and announced a new stimulus program.

U.S. President Donald Trump responded to a move by China to exempt some goods from Chinese tariffs, by doing the same with some Chinese-manufactured goods sold in the U.S.

"Markets are still on the trade war seesaw today," David Carter, chief investment officer at Lenox Wealth Advisors in New York told the Reuters Thomson news agency on Wednesday. "We had some good news on trade which is why markets are up, but the seesaw may drop on any signs of failure."

The Dow Jones rose for the seventh trading session in a row, adding 45.41 points or 0.17% to 27,182.45.

The Standard and Poor's 500 strengthened 8.64 points or 0.29% to 3,009.57.

The Nasdaq Composite climbed 24.79 points or 0.30% to 8,194.47.

The euro surprisingly rose sharply, despite the added stimulus and interest rate cut. It was a matter of 'buying on the news and selling the fact,' as the euro jumped to 1.1064 approaching the New York close.

The British pound was notionally higher at 1.2338, however the Japanese yen was sharply lower at 108.13. The Swiss franc edged up to 0.9909.

The commodity currencies all weakened. The Canadian dollar fell to 1.3220. The Australian dollar dipped to 0.6863, while the New Zealand dollar shrank to 0.6405.

In London, the FTSE 100 rose by 0.09%. The German Dax added 0.41%, while in Paris the CAC 40 advanced 0.44%.

On Asian bourses,the Nikkei 225 was ahead 161.85 points or 0.75% at 21,759.61.

The Shanghai Composite rose 22.42 points or 0.75% to 3,031.24.

The Australian All Ordinaries advanced 13.50 points or 0.20% to 6,756.70.

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