Markets

US and European stocks buoyed by ECB rate cut expectations

US and European stocks soared on Friday as expectations the European Central Bank will cut interest rates rose, helping the dollar to hit a two-week high against the euro.

The dollar was also aided by promising data that showed a jump in US homebuilding permits to a seven-month high.

Read more: US stock markets jump after China hints at stimulus

However, the dollar pared gains against the euro when a report from the Der Spiegel said the German government was prepared to ditch its balanced budget rule and take on new debt to counter a possible recession.

Germanys finance ministry declined to comment on the report.

Germany and other eurozone government bond yields rose late on Friday in wake of the report.

The German 10-year bond yield rose -0.69 per cent, having earlier hit a record low of -0.73 per cent.

Meanwhile, technology shares boosted Wall Streets advances, but US stocks in general posted a third successive week of declines, largely due to the US-China trade war and an “inversion” of 2 and 10-year bond yields sparking recession fears.

Read more: FTSE 100 fRead More

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