At the beginning of today’s trading, leading indices on most European exchanges have risen, following this morning’s gains on Asian markets, as investors hope that the Bank of England and the European Central Bank will lower interest rates this week.
The FTSEurofirst 300 index of leading European stocks rose 0.5 percent this morning, to 933 points. The Frankfurt DAX index is currently up more than 1 percent, while the Paris CAC index is up about 0.4 percent. The London FTSE index, on the other hand, is currently down about 0.2 percent. After the US, Chinese, and Japanese central banks lowered rates last week, it is expected that the Bank of England and the European Central Bank will do the same this week. A reduction in the cost of money usually has a positive effect on the capital market. This morning, the prices of European bank stocks have risen significantly. Although it recorded a decline in profits in the last quarter, the share price of Societe Generale rose by 2.5 percent, as the French bank reported that it is strong enough to weather the financial crisis in the world. The share price of Deutsche Bank increased by 5.2 percent, Credit Agricole by 1.4 percent, and the British HBOS by 1.7 percent. The Tokyo Stock Exchange was closed today due to a holiday. (H)
