European stock indexes finished trading in positive territory today, breaking with the five-day fall, which is associated with increased activity in mergers and acquisitions, as well as the publication of positive quarterly reports.
Meanwhile, many investors perceive a relatively calm the turbulence in the Chinese stock market, believing that other regions of relatively isolated from this volatility. It is worth emphasizing, since the start of the week China's Shanghai Composite lost 10%.
"In the last couple of days the market was concerned about the instability in the market in China, but today these fears receded into the background, and give support to the quotations and financial results of the companies active in the field of mergers," - said the expert Baader Bank Gerhard Schwarz.
In the course of trade is also affected by waiting for a decision of the Federal Reserve System. Analysts say that by the July meeting any changes in monetary policy are not expected. Recall Fed rate steady at 0-0.25% since the end of 2008 against the backdrop of slow economic recovery after the crisis. Earlier, the Fed chief Janet Yellen said that the central bank may raise interest rates in September if the economy continues to improve the alleged rate. According to analysts surveyed by Bloomberg, the July meeting of the Fed may be the last, which should not expect any dramatic statements. Most experts do not expect a change in the base interest rate, and some are still waiting for its increase in September.
The focus was also on US statistics. US service sector grew at a faster pace in July than in June, as employment and new business accelerated, the report showed Markit. Preliminary PMI for the services sector rose to 55.2 in July from 54.8 last reading in June, slightly ahead of the 55 level expected by economists. The sub-index measuring the volume of new business in the service companies, rose to 56.8, its highest level since April, from 56.3 in June. Employment component also rose in June.
Meanwhile, the report submitted by the Conference Board, showed that US consumer confidence index fell in July to a level of 90.9 points against 99.8 points in June (revised from 101.4 points). Economists had expected the index was 100.0 points. The report said that the expectations index fell to 79.9 in July from 92.8 in June, while the current situation index fell to 107.4 points from 110.3 points.
FTSE 100 6,555.28 50.15 0.77% CAC 40 4,977.32 49.72 1.01% DAX 11,173.91 117.51 1.06%
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