Further signs of relaxation and the prospect of fresh cash injections from the European Central Bank (ECB) attract investors to the European stock markets. Dax and EuroStoxx 50 each gained around half a percent on Friday to reach 12,487 and 3,553 points, respectively. With the resumption of bond purchases and generous cheap loans for commercial banks, the ECB sent a clear signal that it wanted to do everything it could to boost the economy, said analyst Ricardo Evangelista from the brokerage firm ActivTrades. According to him, this fuels economic optimism.
This optimism was also nurtured by a statement of the US President Donald Trump that he could imagine a preliminary trade agreement with China. “However, investors should remain skeptical until the ink has actually dried off,” warned portfolio manager Thomas Altmann from investment adviser QC Partners. “Hopes regarding the trade dispute have been dashed in the past few months far too often.” On the commodity market, investors are banking on a fresh breeze for the global economy. The important industrial metal copper increased its price by 1.1 percent. Cyclical equities were also in demand. The chemical company Covestro and the steel maker ArcelorMittal each grew by around three percent.
Despite the ECB rate cut and fresh cash injections, the euro rose on the foreign exchange market by 0.4 percent to $ 1.1103. At the same time, European bonds flew from the depots. On the one hand, the bond purchase volume of EUR 20 billion per month is at the lower end of expectations, said Commerzbank analyst Ulrich Leuchtmann. On the other hand, investors assessed the call by ECB president Mario Draghi that the European governments should also boost the economy with government programs, as an indication that the central bank has hardly any arrows left in its quiver. According to analyst Jochen Stanzl from online broker CMC Markets, the ECB has not yet shot its wand. “Draghi’s successor Christine Lagarde could not only further increase the volume of bond purchases, but also expand it to other asset classes.”
European financial stocks were among the winners. The index for banks in the euro zone advanced by 2.4 percent. With price gains of 2.8 and 4.6 percent respectively, Deutsche Bank and Commerzbank were among the top groups here. Florian Hense, economist at Berenberg Bank, said: “The ECB mitigates the impact of negative deposit rates by exempting a significant proportion of bank deposits from negative interest rates and making financial institutions a generous long-term liquidity offering.”
How private investors can benefit from the Pegasus development experience
Choosing worthwhile and largely safe capital investments requires a strict and qualified selection, as is guaranteed by Pegasus Development and its experience.
Invest profitably regardless of the volatile global economic situation
Anyone who can successfully assert themselves on the market as a business consultancy for 20 years and still implement expansion plans safely and securely is capable to offer positive experiences also for private investors. Pegasus Development AG, as a company founded in Switzerland in 2000, is characterized by a stringent strategy that acts with a steady hand in many markets, away from the unrest.
Invest successfully with the qualifications and experience of the Swiss Pegasus Development AG
In view of the rather turbulent situation on the global trading centers, the hardly foreseeable political developments and the known financial crisis, private investors in particular are faced with the question of an investment that is not only worthwhile but also as secure as possible. Business consultancies such as Pegasus Development have used their experience and know-how to act successfully with a fresh mind and long-term perspectives.
The results show that this course of action and a selection of asset classes strictly based on fixed quality criteria bring the desired success. This also includes a consistently applied diversification of investor portfolios and own commitments in order to achieve security and the most stable possible value performance. The PD continues on its course, for example by pushing ahead with negotiations on cooperation with large companies in the textile industry. This creates the option to participate in the growth rates of certain industry segments.