European shares hit Q4 high as banks advance further, DAX up 1.5 percent

Record ID: 76180

  • Title: European shares hit Q4 high as banks advance further, DAX up 1.5 percent
  • Date: 7th December 2016
  • Summary: FRANKFURT, GERMANY (DECEMBER 7, 2016) (REUTERS) EXTERIOR OF FRANKFURT STOCK EXCHANGE MAN WALKING UP STAIRS, FLOOR IN BACKGROUND TRADERS DAX CURVE TRADER VARIOUS OF BANK SHARES ON BOARD TRADERS (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "Investors believe that yes, there are crises but money remains cheap. Money keeps flowing into stock markets because interests no longer offer an adequate return. There is the belief that this will continue in 2017 and there is the belief that political crises cannot affect the euro zone thanks to the cheap money." TRADER LOOKING ON BOARD SHOWING DAX HIGH OF 10,946.89 POINTS AT 10:49 A.M. (0949 GMT) (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The ECB has no option. It needs to continue to remain very aggressive with its monetary policy. Rates will not be increased. To the contrary, it is expected that the asset purchase programme will be extended beyond March 2017 and that the ECB could even increase the volume to limit any kind of financial policy crisis in the euro zone." MAN ON VISITORS' GALLERY FILMING WITH MOBILE PHONE BOARD SHOWING DAX INCREASE OF 164.11 POINTS OR 1.52 PERCENT TRADER PAN ACROSS BOARD TRADERS ON FLOOR DAX BOARD PAN ACROSS FLOOR
  • Embargoed: 22nd December 2016 11:56
  • Keywords: Germany DAX high banks stocks shares
  • Location: FRANKFURT, GERMANY
  • City: FRANKFURT, GERMANY
  • Country: Germany
  • Reuters ID: LVA0015BVUG7H
  • Aspect Ratio: 16:9
  • Story Text:European shares climbed on Wednesday (December 7), with the regional banking index hitting an 11-month peak after Credit Suisse announced further costs cuts and Italian banks surged towards their best two-day run since 2012.
    The STOXX Europe 600 Banks index was up 1.6 percent after touching its highest level since January, supported by an 8.3 percent rise in Credit Suisse after the Swiss bank announced more than 1 billion Swiss francs ($991 million) in extra cost cuts.
    Italian banks rose 2.5 percent, with Reuters exclusively reporting Italy was preparing to take a 2 billion euros controlling stake in Monte dei Paschi di Siena as the bank's hopes of a private funding rescue faded following Prime Minister Matteo Renzi's decision to quit.
    In Frankfurt, Robert Halver of Baader bank said investors believed that "there are crises but money remains cheap. Money keeps flowing into stock markets because interests no longer offer an adequate return. There is the belief that this will continue in 2017 and there is the belief that political crises cannot affect the euro zone thanks to the cheap money," Halver said.
    Asked about Thursday's European Central Bank rate decision, Halver said "the ECB has no option."
    "It needs to continue to remain very aggressive with its monetary policy. Rates will not be increased."
    The ECB is expected to extend its 80 billion euro per month asset purchase programme by up to 6 months given stubbornly low inflation but may also formally signal its intention to eventually wind down the programme, a concession to conservative policymakers.
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