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United Kingdom

Helen Reid

Eurogroup head Centeno urges Germany to spend, Italy to be cautious

16 Apr 2019

LONDON Germany should use its fiscal leeway to help foster an economic recovery, particularly in the manufacturing sector, Mario Centeno, head of the Eurogroup of euro zone finance ministers, said on Tuesday.

Eurogroup head Centeno urges Germany to spend, Italy to be cautious

16 Apr 2019

LONDON Germany should use its fiscal leeway to help foster an economic recovery, particularly in the manufacturing sector, Mario Centeno, head of the Eurogroup of euro zone finance ministers, said on Tuesday.

UPDATE 1-Eurogroup head Centeno urges Germany to spend, Italy to be cautious

16 Apr 2019

LONDON, April 16 Germany should use its fiscal leeway to help foster an economic recovery, particularly in the manufacturing sector, Mario Centeno, head of the Eurogroup of euro zone finance ministers, said on Tuesday.

Short European stocks still 'most crowded trade,' BAML survey shows

16 Apr 2019

LONDON Short positioning on European equities was the "most crowded trade" for the second straight month in April, a survey of fund managers by Bank of America Merrill Lynch found.

Dovish ECB Draghi drags down euro zone bond yields, euro

10 Apr 2019

LONDON Euro zone government bond markets rallied and the euro slipped on Wednesday, after European Central Bank chief Mario Draghi warned that risks to the economy remained to the downside.

Dovish ECB Draghi drags down euro zone bond yields, euro

10 Apr 2019

LONDON Euro zone government bond markets rallied and the euro slipped on Wednesday, after European Central Bank chief Mario Draghi warned that risks to the economy remained to the downside.

Dovish ECB Draghi drags down euro zone bond yields, euro

10 Apr 2019

LONDON Euro zone government bond markets rallied and the euro slipped on Wednesday, after European Central Bank chief Mario Draghi warned that risks to the economy remained to the downside.

UPDATE 3-Dovish ECB Draghi drags down euro zone bond yields, euro

10 Apr 2019

* Euro weaker, stocks rally (Updates prices, move in bank shares, changes headline)

GLOBAL MARKETS-Investors hit pause as ECB and Brexit risks loom

08 Apr 2019

* World stocks hit 6-month high * STOXX, DAX slip as Germany trade data weighs on sentiment * Greece 10-year bond yields near 13-year lows * Graphic: World earnings growth expectations https://tmsnrt.rs/2I5yaRq * Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh By Helen Reid April 8 - World stocks faltered at six-month highs and U.S. markets were set to dip on Monday as flashpoints including a crucial Brexit summit and a European Central Bank meeting loomed and investors looked ahead to an earnings season that may be disappointing. Signs of further stimulus from China helped Asian shares touch seven-month highs, but investors' enthusiasm was fleeting. MSCI's world equity index inched up 0.1 percent, at six-month highs while European stocks slipped as weak data from Germany and investor caution ahead of a string of political and monetary policy events held the market back. Futures for the S&P 500 and Nasdaq eased 0.1 percent, indicating a weaker start on Wall Street. In a document published on the central government's website late on Sunday, Beijing said it would step up a policy of targeted cuts to banks' required reserve ratios to encourage financing for small and medium-sized businesses. German exports and imports both fell more than expected in February, data showed on Monday, in the latest sign that Europe's largest economy will likely have meagre growth in the first quarter amid increased headwinds from abroad. Germany's DAX fell 0.3 percent, while traders said volumes were very low for this time of day. "Feels very much like a buyers' strike," said one dealer. Markets have had a stellar first quarter, the best in more than eight years for the MSCI All-Country World index. "Today’s very minor move down has to be seen in light of recent developments," said Britta Weidenbach, head of European equities at DWS. "We're back at the levels where the correction started last year. So now the question certainly is, what's next?" The European Central Bank will update the market on Wednesday, the same day as a crucial European Union Summit on Brexit, while China and the EU will hold a summit on trade on Tuesday. "European institutions will be under the spotlight in the coming days as they attempt to display proactivity in trade negotiations, on Brexit and in monetary policy," wrote economists at Swiss private bank Landolt & Cie in a note to clients. Bond markets were being squeezed by investors' search for yield after benchmark German Bunds fell into negative territory. Greece's 10-year government bond yields were within a shade of their lowest level in over 13 years as a cocktail of positive headlines boosted sentiment towards the country and zero percent Bund yields push investors to riskier investments. REALITY CHECK The first-quarter earnings season, which kicks off at the end of this week with U.S. banks reporting, is likely to be a reality check for investors. Analysts have already slashed their earnings expectations for this year, which are now stabilising around 4.2 percent growth for world stocks. "A large gap between the improvement in market prices and the more modest uptick in underlying data increases the ‘pressure to deliver’, especially for 1Q earnings, where we think US numbers will disappoint," wrote Morgan Stanley strategists. Currency markets were also distinctly risk-averse. The dollar slipped 0.2 percent to 97.205 against a basket of currencies. The euro inched up 0.2 percent but hovered near a one-month low at $1.1229 ahead of the ECB meeting later this week. Sterling held just above $1.3 as a crucial week for Britain's negotiations to exit the European Union loomed. Prime Minister Theresa May must come up with a new plan to secure a delay from EU leaders at a summit on Wednesday. Commodities markets were the exception, rallying strongly. Copper prices rose on news of fresh stimulus measures in top metals consumer China and hopes for a U.S.-China trade deal. Oil prices climbed to their highest levels since Nov. 2018, driven by OPEC's ongoing supply cuts, U.S. sanctions against Iran and Venezuela, and fighting in Libya. U.S. crude was last up 20 cents at $63.28 a barrel, while Brent crude futures rose 19 cents to $70.55. (Reporting by Helen Reid Editing by Hugh Lawson and Frances Kerry)

GLOBAL MARKETS-Investors hit pause as central bank and Brexit risks loom

08 Apr 2019

* World stocks stall after strong rally * German trade data weighs on sentiment * Central bank and Brexit risks loom * Greece 10-year bond yields near 13-year lows * Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh By Helen Reid April 8 - World stocks paused on Monday after a strong recent run, as potential flashpoints including a crucial Brexit summit and central bank meetings loomed, and investors began to look ahead to an earnings season that may be disappointing. Signs of further stimulus from China helped Asian shares touch seven-month highs, but investors' enthusiasm was fleeting. MSCI's world equity index was flat and European stocks slipped 0.2 percent as weak data from Germany and investor caution ahead of a string of political and monetary policy events held the market back. In a document published on the central government's website late on Sunday, Beijing said it would step up a policy of targeted cuts to banks' required reserve ratios to encourage financing for small and medium-sized businesses. German exports and imports both fell more than expected in February, data showed on Monday, in the latest sign that Europe's largest economy will likely have meagre growth in the first quarter amid increased headwinds from abroad. Futures for the S&P 500 and Nasdaq eased 0.2 percent, indicating a weaker start on Wall Street. Globally, stock markets have had a stellar first quarter. The MSCI All-Country World index had its best quarter in more than eight years. "Today’s very minor move down has to be seen in light of recent developments," said Britta Weidenbach, head of European equities at DWS. "We're back at the levels where the correction started last year. So now the question certainly is, what's next?" The European Central Bank will update the market on Wednesday, the same day as a crucial European Union Summit on Brexit, while China and the EU will hold a summit on trade on Tuesday. "European institutions will be under the spotlight in the coming days as they attempt to display proactivity in trade negotiations, on Brexit and in monetary policy," wrote economists at Swiss private bank Landolt & Cie in a note to clients. Bond markets were being squeezed by investors' search for yield after benchmark German Bunds fell into negative territory. Greece's 10-year government bond yields were within a shade of their lowest level in over 13 years as a cocktail of positive headlines boosted sentiment towards the country and zero percent Bund yields push investors to riskier investments. German bund yields traded at 1 basis point, just holding in positive territory. REALITY CHECK The upcoming earnings season, which kicks off at the end of this week with U.S. banks reporting, is likely to be a reality check for markets. Analysts have already slashed their earnings expectations for this year, which are now stabilising around 4.2 percent growth for world stocks. "Q1 will definitely not be a good quarter for corporates, and it might well be that the market turns back to fundamentals whereas a lot of hope on China/U.S. trade deals and developments on the interest rate front had driven markets up year-to-date," said DWS' Weidenbach. Currency markets were also distinctly risk-averse. The dollar slipped 0.1 percent to 97.269 against a basket of currencies. The euro inched up 0.1 percent, but hovered near a one-month low at $1.1229 ahead of the ECB meeting later this week. Sterling inched up 0.2 percent to $1.3057 as a crucial week for Britain's negotiations to exit the European Union loomed. Prime Minister Theresa May must come up with a new plan to secure a delay from EU leaders at a summit on Wednesday as a deadline of this Friday draws ever closer. Commodities markets were the exception, rallying strongly. London copper prices rose as much as 1 percent on Monday, snapping two days of declines, on expectations of more stimulus measures in top metals consumer China and optimism over Sino-U.S. trade talks. Oil prices rose to their highest levels since Nov. 2018, driven by OPEC's ongoing supply cuts, U.S. sanctions against Iran and Venezuela, and fighting in Libya. U.S. crude was last up 39 cents at $63.45 a barrel, while Brent crude futures rose 42 cents to $70.76. (Reporting by Helen Reid, Editing by Hugh Lawson)

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