European Stocks Rally As ECB Throws In Towel On Rate Hikes
Portfolio Pulse from Piero Cingari
European stocks rallied following the European Central Bank's (ECB) announcement of a potential end to its interest rate hiking cycle. The ECB also revised down its estimates for inflation and growth. This news led to a surge in European indices, including the Euro Stoxx 50, UK FTSE 100, Italy's FTSE MIB, French CAC 40, and Germany DAX 30. Positive economic news from the US and China further boosted European stocks, particularly in the luxury and banking sectors.
September 14, 2023 | 4:50 pm
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POSITIVE IMPACT
The iShares MSCI Germany Index Fund (EWG) posted a respectable 1.2% gain.
The ECB's announcement led to a gain in the Germany DAX 30 Index, which is monitored through the EWG ETF. This is likely to have a positive impact on the ETF's price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The iShares MSCI Italy ETF (EWI) climbed 1.5%, registering its best session since the end of July 2023.
The ECB's announcement led to a climb in Italy's FTSE MIB index, which is tracked by the EWI ETF. This is likely to have a positive impact on the ETF's price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The iShares MSCI France ETF (EWQ) recorded a 1.6% gain, its most significant daily increase since early May 2023.
The ECB's announcement led to a gain in the French CAC 40 Index, which is reflected by the EWQ ETF. This is likely to have a positive impact on the ETF's price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The iShares MSCI United Kingdom ETF (EWU) rallied 2.2%, poised to achieve its best session since early November 2022.
The ECB's announcement led to a rally in the UK FTSE 100 Index, which is monitored through the EWU ETF. This is likely to have a positive impact on the ETF's price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The SPDR DJ Euro STOXX 50 ETF (FEZ) surged 1.6% following the ECB's announcement, marking its most robust session in September.
The ECB's announcement of a potential end to its interest rate hiking cycle led to a surge in European indices, including the Euro Stoxx 50, which is tracked by the FEZ ETF. This is likely to have a positive impact on the ETF's price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100