European stocks climb as investment rules take effect

-
 LONDON: Europe's major stock markets rose on Wednesday (Jan 3) but gains tempered as new investment regulations were rolled out across the region.
Investors have kicked off 2018 in buoyant mood as the world economy stirs to life and job creation, particularly in the United States, picks up.
World equity markets had already fizzed higher on Tuesday on growing investor optimism, with the exception of key European markets, but some analysts cautioned over the outlook for the rest of the year.
Regardless, Wall Street powered on with small gains approaching midday in New York.
'EUROPE CHOPPY'
Europe also rose despite the introduction of so-called MiFID II rules, which seek to tighten financial market regulation to stop rampant speculation.
Advertisement
The regulations, unveiled in 2011 at the height of the Eurozone debt crisis and in the wake of the global economic meltdown, aim to curb speculative trading in commodities and to regulate high frequency trading to protect investors.
In a new twist on Wednesday, British markets regulator the Financial Conduct Authority and German counterpart BaFin both granted the complex derivatives market another 30 months to comply with MiFID II reforms.
Wednesday's climb followed another record-breaking session on Wall Street.
Back in Europe, London trod 0.3 per cent higher, with clothing retailer next boosted by news of bumper Christmas sales, while Paris added 0.8 per cent and Frankfurt 0.9 per cent.
"European equities are mostly higher in afternoon action, rebounding slightly from yesterday's shaky start to the New Year," said analysts at the Charles Schwab brokerage.
But markets "are choppy as the European Union's new investment regulations, known as MiFID, are taking effect today", they added.
Earlier, Asia was given another strong lead from Wall Street where technology titans Apple, Amazon and Google-parent Alphabet were the standout performers.
DOLLAR ATTEMPTS RECOVERY
In foreign exchange activity on Wednesday, the dollar recovered somewhat against the euro following its recent poor form.
The European single currency had jumped on Tuesday to a four-month high at US$1.2081.
"Euro/dollar has eased off ... after a smashing start for this year," added Think Markets analyst Naeem Aslam.
"The rally is primarily pumped by the optimism that the Eurozone’s economy is performing well and the European Central Bank would stay on track to finish its ultra-loose monetary policy this year."
Elsewhere, oil prices moved higher, having briefly hit 2.5-year peaks the previous day on geopolitical concerns in key crude producer Iran.
Key figures around 1635 GMT:
London - FTSE 100: UP 0.3 per cent at 7,671.11 points (close)
Frankfurt - DAX 30: UP 0.9 per cent at 12,989.82 (close)
Paris - CAC 40: UP 0.8 per cent at 5,331.28 (close)
EURO STOXX 50: UP 0.6 per cent at 3,509.88
New York - DOW: UP 0.2 per cent at 24,883.69
Hong Kong - Hang Seng: UP 0.2 per cent at 30,560.95 (close)
Shanghai - Composite: UP 0.6 per cent at 3,369.11 (close)
Tokyo - Nikkei 225: Closed for holiday
Euro/dollar: DOWN at US$1.2025 from US$1.2059 late on Tuesday
Pound/dollar: DOWN at US$1.3514 from US$1.3594
Dollar/yen: UP at 112.36 yen from 112.26 yen
Oil - Brent North Sea: UP 81 cents at US$67.38 per barrel
Oil - West Texas Intermediate: UP $1.07 at US$61.44
Source: AFP/de

Comments

Post a Comment

Popular posts from this blog

Aquashield Oil and Marine Services protects Nigeria’s waters against criminal activity

-
Image
Offshore industries in Nigeria are afflicted by the ever-present risk of piracy, sea robbery, militancy and kidnapping. With the threat level showing little sign of abating, security companies are gearing up to provide crucial protection services. The ongoing crisis scenario that plagues Nigeria’s territorial waters has prompted a dramatic transformation of the offshore security industry in the region. The industry was previously focused on unregulated fishing and other low-level issues, but has now evolved to tackle combative security threats such as illegal bunkering, the vandalism of oil and gas installations, piracy, sea robbery, militancy and kidnapping. Behind this shift is a destructive bout of youth restlessness in the Niger Delta region. The predicament has dealt a serious blow to the oil and gas industry, leading to reduced revenues for international companies that operate in the region. Similarly, its effects have also been damaging to the insurance companies that cov...
Read more

Kenya Airways gets US Govt. nod for direct flights

-
United States President Donald Trump has approved Kenya Airways application for direct flights from Nairobi to the US. According to an order released yesterday by the US Department of Transportation, neither Trump, nor his representative, rejected the application by the national carrier for the direct flights. Interested parties had been given 21 days to file objections to the order. On the other hand, Trump had 60 days to disapprove the application but did not, hence the application became valid on September 5, 2017. Kenya Airways is now allowed to transport persons, property, and mail from any point or points behind Kenya, via any point or points in Kenya and any intermediate points, to any point or points in the United States and beyond, the order read in part. “We make final our findings and conclusions as stated in the order and award to Kenya Airways PLC the foreign air carrier permit with associated conditions attached to the order,” US director of international a...
Read more

Self-service car sharing comes to Morocco

-
Image
It’s the perfect match for modern day living: self-service cars, by the hour or day, accessible 24/7 and with parking, fuel and insurance costs included. This, a first for Morocco, is on offer in Casablanca from the startup Carmine. Now that self-service bikes have rolled into the country, cars are following suit and offer a much-wanted service in the economic capital, burdened with increasing, chaotic traffic. The firm was created in 2014, and tested the waters with a pilot project in July 2015. According to CEO and founder Mohamed Mrani Alaoui, this was, “A period during which we really reached maturity.” There was a lot to do: running trials on rates, defining parking spaces through a partnership with the city, personalising technology and getting to know client needs. “People thought the concept wouldn’t work in Morocco, to judge by the time it took us to go into commercial operation,” says Alaoui. “But that pilot period was about making the new service more...
Read more