Sumary of UPDATE 3-Dovish ECB, upbeat earnings support euro zone stocks:
- The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 19, 2021. REUTERS/StaffEuro zone shares rose as much as 1.3% in afternoon trading after the central bank said it would not hike rates until it sees inflation reach its 2% target “well ahead of the end of its projection horizon and durably”.
- The rate-sensitive euro zone banking index inched up 0.2%, although it was trading at levels prior to the policy decision with government bond yields on the decline.
- The index had hit a five-month low on Monday on fears over the growing spread of Delta variant.
- In earnings-driven moves, Sweden-based private equity firm EQT jumped 13.2% to the top of STOXX 600 after reporting upbeat first-half earnings, while Swiss engineering company ABB hit its highest since November 2007 after it doubled its full-year sales outlook.