Total shares fell sharply in early trade yesterday, but then recovered to end the day with a gain of 0.37% at €44.59 after the French oil group named Patrick Pouyanne, currently head of refining and chemicals, as its new chief executive while former CEO Thierry Desmarest had been appointed chairman.
AFP
Europe’s main stock markets pushed upwards, helped by speculation that central banks may take further stimulation measures and put off rate hikes to support global economic growth.
London’s benchmark FTSE 100 index climbed 0.43% to close at 6,399.73 points, but sterling was under pressure after minutes from the latest Bank of England meeting showed no rush to raise interest rates.
In Paris, the CAC 40 added 0.58% to 4,105.09 points, while Frankfurt’s DAX index rose 0.60% to 8,940.14 points.
Madrid climbed 0.96% and Milan racked up a 1.09% gain.
“Shares in Europe were mostly rising today although not at the frenetic pace of yesterday with the European Central Bank denying rumours of further stimulus ... leaving investors undecided whether to believe the rumour or the denial,” said CMC Markets UK analyst Jasper Lawler.
European stocks had shot higher on Tuesday after Chinese economic growth data boosted optimism over the global economic outlook. They were lifted also by rumours that the European Central Bank could step up its monetary stimulus, dealers said.
The idea, reportedly under discussion at the European Central Bank but not yet decided on, comes as the central bank struggles to combat deflation pressures and shore up growth in the 18-nation eurozone.
A member of the ECB’s decision-making governing council, Belgium National Bank chief Luc Coene, said yesterday that several of his colleagues had mentioned the idea of buying corporate bonds but that it had yet to be seriously discussed.
“Investors remain hooked on declarations or rumours swirling around the central banks,” noted Franklin Pichard, director of Barclays Bourse in Paris.
Possible action of the ECB would have what it takes “to restore a semblance of optimism in an uncertain world,” he added.
Last week, stock markets had been rocked by near panic as traders worried that the eurozone could return to recession.
In trading yesterday, shares in British American Tobacco shed 2.64% to 3,375 pence, topping the FTSE 100 losers board, after the maker of Lucky Strike and Dunhill cigarettes reported a sizeable drop in sales.
Total shares fell sharply in early trade, but then recovered to end the day with a gain of 0.37% at €44.59 after the French oil group had named Patrick Pouyanne, currently head of refining and chemicals, as its new chief executive while former CEO Thierry Desmarest had been appointed chairman.
The nominations at an emergency meeting of the Total board of directors came after chief executive Christophe de Margerie died in a plane crash in Moscow on Monday.
Shares in French automaker PSA Peugeot Citroen closed up 1.09%, down from early gains of 2.5%, to €9.47 after the group raised slightly its expectations for growth of its main European overall market.
The euro fell to $1.2657 from $1.2714 late in New York on Tuesday as it continued to feel pressure from the possibility of stepped-up ECB stimulus action.
The European single currency slipped to 78.77 British pence from 78.90 pence. The pound was worth $1.6070, down from $1.6113 on Tuesday.
On the London Bullion Market, the price of gold dropped to $1,243.75 an ounce from $1,250.25.
The pound struggled against the dollar as markets concluded that the Bank of England was in no rush to start hiking its main interest rate.
Wall Street made only modest gains despite solid earnings from Boeing and Yahoo as US equity markets paused after three days of gains.
The Dow Jones Industrial Average added 0.14% to 16,638.18 points, while the broad-based S&P 500 rose 0.30% to 1,947.03, and the tech-rich Nasdaq Composite Index gained 0.29% to 4,432.21.
