European Shares Rise As China Pledges Fresh Stimulus

European stocks were moving higher on Monday after China pumped in more stimulus to counter the economic hit from the coronavirus outbreak that has claimed over 1,700 lives.

China’s central bank pumped 100 billion yuan (about 14.33 billion U.S. dollars) into the financial system today through reverse repos in a bid to improve liquidity in the system

The central bank also injected 200 billion yuan into the market via medium-term lending facility as China continues to battle the outbreak of the deadly Coronavirus.

China’s Finance Minister has unveiled plans to roll out targeted and phased tax and fee cuts to help relieve difficulties for businesses.

The pan European Stoxx 600 edged up 0.2 percent to 431.35 after closing 0.1 percent lower on Friday.

The German DAX was up 0.1 percent and the U.K.’s FTSE 100 was rising 0.2 percent, while France’s CAC 40 index was little changed with a positive bias.

Tullow Oil shares fell nearly 5 percent after the exploratory firm announced that its Marina-1 exploration well in Peru had reached total depth without coming across any hydro carbons.

Jupiter Fund Manager shares jumped more than 8 percent. The company has announced the proposed acquisition of Merian Global Investors Limited, an independent active asset management firm with more than £22 billion assets under management.

NMC Health shares fluctuated as its billionaire founder resigned as co-chair in a mass board exodus at the embattled private healthcare firm.

Automobile companies, which are highly sensitive to Chinese demand, were moving higher. BMW, Daimler, Volkswagen and Peugeot were up 1-2 percent.

Automotive parts manufacturer Faurecia surged 5.3 after reporting a rise in annual profits and sales.

Alstom climbed 2.7 percent. The French train maker confirmed that it is in talks to acquire the rail business of embattled Canadian train and plane maker Bombardier Inc.

Source: Read Full Article