European shares set for 7th week of gains

Print version
July 20, 2012, 11:12 a.m. | World — by Reuters

A man checks a monitor displaying stock exchange index, in Milan, Italy, Wednesday, July 18, 2012. The 17 countries that use the euro have to integrate their economies further if they are to emerge from their economic crisis intact, the International Monetary Fund said Wednesday.
© AP


LONDON — Europe's top shares fell on Friday but remained on course for a seventh straight week of gains as expectations of further stimulus measures in the United States and robust corporate earnings offset a weak macroeconomic outlook.

By 0704 GMT, the FTSEurofirst was down 3.03 points, or 0.3 percent, at 1,061.44, after closing at its highest level since early April, albeit in low volumes, on Thursday, and having bounced from a 14.5 percent fall from mid-March to the start of June.

Recent reports from the International Monetary Fund on the UK and euro zone economies has painted a particularly bearish macro picture and kept alive hopes of further quantitative easing.

A fairly robust start to the earnings season has also helped, with roughly 15 percent of those due to do report having done so, beating consensus estimates by around 6 percent, Thomson Reuters Starmine data showed, albeit from watered down expectations.

"That is the cocktail (that is driving the indexes) it is somewhere between more monetary easing ... and earnings where there has been a few pleasant surprises,"Richard Hunter, head of equities at Hargreaves Lansdown, said.

Hunter said market momentum could be maintained even if the U.S. Federal Reserve -- the last main central bank yet to embark on a fresh round of stimulus -- fails to give the market what it wants in the form of more quantitative easing because the justification for that would be improving economic data, which would in turn be a lift to sentiment.

The Kyiv Post is hosting comments to foster lively public debate through the Disqus system. Criticism is fine, but stick to the issues. Comments that include profanity or personal attacks will be removed from the site. The Kyiv Post will ban flagrant violators. If you think that a comment or commentator should be banned, please flag the offending material.
comments powered by Disqus


© 1995–2015 Public Media

Web links to Kyiv Post material are allowed provided that they contain a URL hyperlink to the material and a maximum 500-character extract of the story. Otherwise, all materials contained on this site are protected by copyright law and may not be reproduced without the prior written permission of Public Media at
All information of the Interfax-Ukraine news agency placed on this web site is designed for internal use only. Its reproduction or distribution in any form is prohibited without a written permission of Interfax-Ukraine.