Tuesday, October 18, 2016

European Stocks Open Higher With Sentiment Boosted By Stronger Oil Prices; Inflation In Focus

By Gemma Acton
CNBC
October 18, 2016

The pan-European STOXX 600 was around 0.62 percent higher with all major bourses in positive territory.

However, data from the Institute of International Finance showing weak portfolio flows to emerging markets is adding to nerves around the strength of China and is just one factor putting a break on risk appetite.

Investor caution continues to mount as election day approaches in the U.S. This as comments from Federal Reserve Vice Chair Stanley Fischer on Monday suggested the U.S. central bank was "very close" to meeting its employment and inflation goals, sending U.S.stocks lower into Monday's session close.

In Asia, disappointing earnings and weak outlooks from Hong Kong-listed companies, particularly in the telco and property space, dampened enthusiasm for equities, as concerns over a softer yuan continue to grow.

All eyes are now on inflation data expected out of the U.S. and U.K. as a multi-week sell-off of government bonds in these markets continued apace on Monday.


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