Thursday, August 4, 2016

ECB: moderate recovery, but risks remain. European stocks open above parity – La Stampa



 
 
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ECB: moderate recovery, but risks remain. European stocks open above parity

For the Eurotower recovery favored by investment and employment growth, although there are still uncertainties due to Brexit and structural reforms

for the European Central Bank, the euro area economic recovery is proceeding, supported by domestic demand, while export growth remains modest. A recovery that, therefore, should proceed at a moderate pace, but – warns the ECB “risks to the outlook for euro area growth remain on the downside.”

The favorable effects are brought, for the Eurotower – from funding conditions together with improvements in the profitability of the companies, which favor investment. In addition, the constant increase in employment and the price still relatively low oil should continue to support real disposable income of households and private consumption. However they remain even the shadows: in particular the escalation of uncertainty following the outcome of the referendum on the United Kingdom by the EU might impact on confidence and Trade. In addition, the economic recovery is still hindered by budgetary adjustments in progress in several areas, from the slow implementation of structural reforms and the growth prospects contained in emerging countries.

The spread of the monthly bulletin of the Central Bank was expected from the bags that have opened just above parity, in the slipstream with Wall Street’s gains yesterday and Asian markets this morning, with the square of Tokyo who finished with an increase of more than one percentage point. At the start of session in London the FTSE100 index marks a + 0.10%, while in Frankfurt the DAX rises 0.65% and in Paris the CAC gained 0.38%. In Madrid, the index yields 0.17% to 8263.5 points.

 

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