- Title: European shares recover after U.S. midterm vote
- Date: 7th November 2018
- Summary: FRANKFURT, GERMANY (NOVEMBER 7, 2018) (REUTERS) TOP SHOT OF FLOOR AT FRANKFURT STOCK EXCHANGE TRADERS DAX BOARD VARIOUS OF TRADERS BOARD SHOWING DAX INCREASE OF 104.03 POINTS OR 0.91 PERCENT TRADER (SOUNDBITE) (English) CHIEF ECONOMIST GERMANY WITH JULIUS BAER BANK, DAVID KOHL, SAYING: "For the markets probably, this is not so relevant who has the majority in the Senate. For markets it's relevant what happens with the trade conflict, what happens with tax reforms and so on? And here, very little is changing with this new constellation, that Trump has a Democratic Congress." TRADER BOARD SHOWING DAX HIGH OF 11,608.55 POINTS (SOUNDBITE) (English) CHIEF ECONOMIST GERMANY WITH JULIUS BAER BANK, DAVID KOHL, SAYING: "Well. there might be at least hope, hope that something is changing in the U.S. but really drilling down what has changed, probably this is too early and probably too optimistic. Why? Because on trade policy but also on foreign policy, it's the president and the administration which decides, not the parliament, the Congress. So here, hope is probably too early and probably a bit too optimistic and we don't expect actually that markets priced this in." TRADER (SOUNDBITE) (English) CHIEF ECONOMIST GERMANY WITH JULIUS BAER BANK, DAVID KOHL, SAYING: "But the good news for markets is definitely that tax policies, tax cuts will not be scaled back so here is some optimistic tone when it comes to the U.S. economy will prevail. And also on deregulation which is entirely up to the administration, on the Trump administration which still sits in the White House. This will prevail as well. So also here, some optimistic, some tailwind for the U.S. economy and for markets." TRADER PAN ACROSS BOARD (SOUNDBITE) (German) CHIEF ECONOMIST GERMANY WITH JULIUS BAER BANK, DAVID KOHL, SAYING: "Not a lot will change for the markets so you can't call this a success. Some people had fantasies about a market upswing but basically, the main issues which affected the markets such as the trade war won't change after this result. So the effects are neutral." TRADER BOARD SHOWING DAX HIGH OF 11,608.55 POINTS (SOUNDBITE) (German) CHIEF ECONOMIST GERMANY WITH JULIUS BAER BANK, DAVID KOHL, SAYING: "Everything to do with trade and with foreign policy is decided uniquely by the president so not much will change in that area. Sure, you can have hope but it looks like that's premature." TRADER TOP SHOT OF FLOOR
- Embargoed: 21st November 2018 10:12
- Keywords: U.S. mid-term elections DAX German index Frankfurt shares stock exchange
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA00195I90GD
- Aspect Ratio: 16:9
- Story Text:European shares bounced on Wednesday (November 7) after U.S. midterm elections delivered no big surprise, while a string of solid earnings updates and a rally in Spanish banks on a favourable tax ruling also provided relief.
The pan-European STOXX 600 benchmark rose 1.1 percent to a three-day high in a broad-based rebound that saw all major country and sectoral indexes trade in positive territory in morning deals.
Democrats rode a wave of dissatisfaction with President Donald Trump to win control of the U.S. House of Representatives on Tuesday, giving them the opportunity to block Trump's agenda and open his administration to intense scrutiny.
In Frankfurt, the chief economist for Germany at Swiss bank Julius Baer predicted the U.S. election outcome would not have much of an impact on markets.
David Kohl told Reuters Television that key issues like the ongoing trade war did not change.
"For markets it's relevant what happens with the trade conflict, what happens with tax reforms," Kohl said.
At 11:35 a.m. (1035 GMT), the DAX was up 131 points or 1.14 percent and hovered around 11,614 points. - Copyright Holder: REUTERS
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