European stock futures soared on Friday amid hopes over a massive stimulus plan from European leaders that are set meet today. Meanwhile, European Central Bank Chief Christine Lagarde kept interest rates unchanged and extended the previous policy.
The chief said business and people will get benefit from the European Union stimulus scheme.
“We do not see an agreement being reached as the base case ahead of this EU summit,” said strategists at ING. “We expect some progress towards a compromise being made, but some time for more negotiations is still required.”
European stock market retreated on Thursday as weak earnings numbers and lower than expected guidance from major companies negatively impacted investors’ sentiments. The shares of European luxury goods Richemont dropped more than 4% due to a 50% drop in quarterly sales. Share of Swedish Orphan Biovitrum also plunged close to 8% and stood at the bottom of the European blue-chip index.
In addition, the trade war between the United States and China along with low consumption numbers added to investors’ concerns.
The sharp growth in coronavirus infections has also been denting investor’s optimism. US stock markets fell for the first time in the last five days amid poor corporate earnings reports.
The pan-European STOXX 600 futures are up slightly on Friday after plunging 0.7% on Thursday. Germany’s DAX and British FTSE are also in green on Friday. Both indices have generated losses in Thursday trade.
What Does it Mean?
- European stock futures are up on Friday ahead of a key meeting.
- US stock futures are up slightly by a few points.
- The gold price jumped from the previous close but still trading below $1800 level.
- Crude oil dipped slightly after OPEC lowered production cuts.
- Euro jumped to 4 months high on Friday against the US dollar.