Reuters Insider - European Afternoon Market Update

Metro Holdings

13/01/2015 20:09

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        An afternoon roundup of European market news      
 
 
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Transcript (May be auto-generated)

 Well, the European markets were bolstered today by the retail sector and the 
prospect of economic stimulus from the ECB. The FTSEurofirst 300 rose 1.5% after
starting the day lower. Europe's fourth biggest retailer, Germany's Metro jumped
6.5%, and UK retailer Morrisons added more than 4% after announcing the 
departure of its CEO, following weak trading over the Christmas period. And 
British inflation tumbled to its lowest level in more than 14 years, halving to 
an annual 0.5% in December which will give consumers a boost in spending power 
following years of weak wage growth. The Italian Borsa gained 0.7% and that was 
spurred on by borrowing costs, reaching new record lows ahead of a decision from
the ECB. Now, we are, of course, looking ahead to January 22 to the ECB's next 
policy meeting, and there are growing expectations that it will announce a large
scale government bond-buying program to stop the Eurozone sliding into 
deflation. Looking to Greece now and the benchmark ATG Equity Index rose almost 
2% as the country's January 25 election looms. Now, anti-bailout party Syriza is
leading the opinion polls and wants to cancel the austerity terms of the 
country's EUR240 billion-bailout and renegotiate some debt, and that's raising 
fears of a default. Now, Europe's energy sector continue to suffer on the back 
of even weaker oil prices. Crude slumped to its lowest level in almost six 
years, edging below $46 a barrel - at one point, dipping to $45.19, its lowest 
level since March 2009. But analysts say this is positive news for the retail 
sector because, in theory, it means consumers will have more money to spend