* Washington, China rein in trade actions * Banks rally on ECB plan before paring gains * AB InBev up on plans to explore Asia unit IPO (Updates to close, changes comment) By Sruthi Shankar and Agamoni Ghosh Sept 12 (Reuters) - European stocks edged higher in choppy trading on Thursday, with banks underwhelmed by the European Central Bank's stimulus measures while Washington's move to delay tariffs on Chinese goods boosted automakers and technology firms. The pan-European stocks index
.STOXXgained as much as 0.8% after the ECB cut its deposit rate to a record low of -0.5% from -0.4% and said it will restart bond purchases of 20 billion euros a month from November. urn:newsml:reuters.com:*:nL5N2630ZTThat initially sent bond yields tumbling, the euro down and euro zone stocks .STOXXEinto positive territory. urn:newsml:reuters.com:*:nL5N2633S7Gains in the STOXXE index wore off as the session progressed, however, with euro zone banks .SX7Eswinging on the news that the ECB was easing the terms of its cheap loan scheme to banks and introducing a tiered deposit rate. "I don't think this is a game changer," said Pictet Asset Management's chief strategist Luca Paolini. "Even if it was a positive surprise in some areas, there were negative surprises overall. They basically did what the market expected and they've done it many times in the past." Euro zone banks - one of the main beneficiaries of an investor pivot into value stocks in recent days - closed 0.24% higher, while broader European banks .SX7Pfinished unchanged. Italian banks .FTIT8300, which have big holdings of sovereign bonds, were an outperformer with a 1.2% gain, owing to a recent surge in Italian government bond prices. Trade headlines also swayed markets, with automakers .SXAPjumping on a report that the Trump administration was considering an interim deal with China, although CNBC said that a senior White House official denied the report. Offering relief to battered financial markets, President Donald Trump said the United States would delay increasing tariffs on $250 billion worth of Chinese imports by two weeks as "a gesture of good will". urn:newsml:reuters.com:*:nL3N2621DVOptimism about a de-escalation in the economically damaging China-U.S. trade war and expectations of monetary stimulus from the ECB have led major European indices to track higher this week. Energy stocks .SXEPwere a big drag, falling 1.3%, as oil prices fell on oversupply concerns. O/RAmong individual stocks, Anheuser-Busch InBev ABI.BRwas the biggest boost to the STOXX 600 after the company said it would again explore an initial public offering in Hong Kong for its Asia Pacific unit two months after cancelling the planned listing. urn:newsml:reuters.com:*:nL5N26264IConversely, transportation firm Alstom ALSO.PAfell 4.9% after French conglomerate Bouygues BOUY.PAhalved its stake in the company. urn:newsml:reuters.com:*:nL5N2631C5(Reporting by Sruthi Shankar and Agamoni Ghosh in Bengaluru Editing by Sonya Hepinstall) ((firstname.lastname@example.org; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 6328))
This stream of information is provided by a third party company, Reuters, which is independent of Davy. Davy does not control the flow of articles in the stream and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. The information is never a recommendation and does not constitute investment advice.
Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.