Optimistic forecast, the fed combines with relief at the result of the Dutch elections, pushing the index to Amsterdam nine years
Stock markets in Europe soared as traders reacted to the defeat of the anti-EU candidate in the Dutch elections and the latest interest rate announcement from the Central Bank of the United States.
The Federal reserve accompanied its latest rate rise this week with the leadership that it will not tighten policy, as well as financial markets are expected this year. This post warmed stock quotes, adding to the upbeat mood caused by the results of parliamentary elections in the Netherlands.
Stock index in Amsterdam rose to a nine-year high after Prime Minister of the Netherlands, mark Rutte, has successfully fought off a challenge populist Geert Wilders. His victory helped save shares in other European markets, as it removes the fear of a wave of nationalist sentiment spreading across the continent, undermining the Eurozone and its economy.
The main index of the UK’s bluechip index, the FTSE 100 was dispersed to a New record level and key indicators in France and Germany closed at its highest level since mid-2015. Analysts say that investors now will be turning to the upcoming presidential elections in France and the quarter and month of negotiations, but that the Dutch result has helped the mood.
“The cloud of uncertainty is blown away overnight,” said Joshua Mahoney, a market analyst at online trading company IG. “The loss of Dutch populist Geert Wilders comes as a huge boost for the EU and the Eurozone, which will now turn its attention to the entry into force of article 50, then in next month’s elections in France.”
Latest news from the Federal reserve system of the United States has also become a key factor of market movement. The Central Bank raised borrowing costs in the largest economy in the world for the second time in three months on Wednesday, taking the base rate from 0.75% to 1%. He softened his previous forecast for the future rises, although weakened the dollar.
The decline of the American currency helped to power the rally of commodity prices, which stimulated many mining shares in the FTSE 100. . Glencore, Antofagasta and Rio Tinto were among the top risers as the index closed up 47 points, or 0.6%, to a new high of 7,415.95. Anglo-American was the big winner, however, is the closing rose nearly 9% after Indian billionaire Anil Agarwal said that he buys 2 billion pounds of shares.
In the United States, stocks drifted lower in London. The health sector was under particular pressure the proposed changes in the administration of Donald trump, who look set to raise the regulatory costs of companies.
Shares in luxury winter jackets Canada Goose retailer raised in first day of trading, jumping $18.40 at one point, well above the IPO price of $12.78.