European stocks rose modestly on Thursday, recording the third consecutive increase in-session, which was associated with the publication of strong corporate accountability. Also supporting markets have data for the euro area, reporting the unexpected increase trust companies in most major economies in the region. The survey was carried out of the European Commission at the time when Greece is so much closer to the exit from the euro zone as no country before. Nonetheless, Greece July 13 failed to reach agreement with creditors that will allow the country over the next three years to obtain new loans. Increased confidence in the companies suggests that the observed recent increase in investment and employment is likely to continue, supporting the economic recovery in the eurozone. Sentiment in the euro-zone economy, which takes into account the mood of businesses and consumers, in July rose to 104.0 from 103.5 in the previous month, reaching the highest level since July 2011. The index is still above the long-term average level of 100.0. Economists expected a decline to 103.3.
Focus has also proved the Economic Bulletin of the ECB. It was reported that the unhurried recovery of the European economy is gaining momentum due to falling oil prices and loose monetary policy, but the increase in corporate spending remains weak. Cheap oil also puts downward pressure on inflation, which is a problem for the bank, which will launch the QE program to prevent deflation and accelerating inflation. The Bank believes that its measures are bearing fruit, and expects that prices will rise by the end of the year, and will continue to rise in 2016 and 2017. The ECB said that the latest figures correspond to the continuation of economic expansion in the second quarter.
Minor influenced by news from Greece. Today, the IMF said that high debt levels and poor implementation of reforms cut Greece from third financial aid programs. According to the resolution, presented yesterday at a meeting of the IMF, the Fund does not agree to participate in the third program of assistance. The Fund will decide whether to take part in the second stage, just after Greece agrees to carry out the proposed reforms, and creditors - debt relief. Yesterday the head of the IMF Lagarde said that the IMF insists on debt restructuring of Greece. "We see a situation where we have analyzed the debt and decided that it can not be maintained. To Greece succeeded, and any program can run external financing, requires substantial debt restructuring," - said Lagarde.
Investors also drew attention to the statistics on the United States, which supported the view that a rate hike is not far off. Recall of US GDP in the II quarter 2015 increased by 2.3% in terms of annual growth. Analysts on average had forecast an increase in the US economy in April-June by 2.6%. The indicator for the I quarter of this year has been significantly improved - up to 0.6% from the previously announced reduction of 0.2%.
FTSE 100 6,668.87 37.87 0.57% CAC 40 5,046.42 28.98 0.58% DAX 11,257.15 45.30 0.40%
Shares of Royal Dutch Shell Plc rose 5.7% after the company said it would cut 6.5 thousand. Jobs this year and will cost optimization to convince investors that it is able to survive the difficult period of reduction in price materials.
The cost of Nokia jumped 6.6%. The Finnish company has completed the second quarter of 2015 with higher profits than expected, thanks to a substantial increase in software sales.
The price of the French automaker Renault dropped 8.1%, as the growth rate of profit group behind rival PSA Peugeot Citroen.
Quotes Fiat Chrysler Automobiles NV rose 4.9% after increasing the profit forecast for the current year.
The cost of AstraZeneca Plc rose 2.7% after reporting quarterly earnings that exceeded the amount of analysts' forecasts.
Shares of Deutsche Bank, has tripled profits in the last quarter, rose 4.3%.
Capitalization Inchcape Plc rose 6.8% after the announcement of share buyback program.