EU stocks grew on greenback’s pullback
European stocks soared on Thursday amid the weakening major US currency, thus supporting bounds in commodity-related shares. However, gloomy Credit Suisse AG earnings limited the newly achieved gain.
The Stoxx Europe 600, previously boasted +0.5% at 331.19, sharply turned negative after its 1.1% surge. It feels like the Thursday winning benchmark will stand out in four sessions.
Stocks of Credit Suisse AG acted a cap after disappointing financial data from the banking heavyweight. They dropped 12% after the Swiss bank reported the loss of fourth-quarter loss of 5.83 billion Swiss francs or $5.8 billion mainly because of an ill-fated American acquisition.
By the way, gas and oil, not to mention basic material shares grew mainly in European trade after the greenback lost ground against the major European currency, yen, as well as other currencies. On Wednesday, negative American economic data provoked sell-off in the evergreen buck. Obviously, it was a decent motivation for oil as well as metals, because the weaker greenback makes them cheaper to buy for holders of other currencies.
On Thursday, the euro soared to $1.11. That was a three-month high, caused by the fact that recently Mario Draghi, European Central Bank President discussed benefits and downsides of utilizing monetary policy to withstand low inflation.