LONDON MARKETS: London Markets Higher, But Gains Pared As ECB's Rate Stance Disappoints

By David Morris

London markets stayed positive, but pared gains Thursday amid some disappointment over the speed of monetary easing in Europe.

How did markets perform?

The U.K.'s FTSE 100 rose 0.4% to 7,248.17. It had edged up 0.1% Wednesday.

The pound rose 0.2% to $1.2708, after nudging 0.4% higher Wednesday.

What's moving the markets?

The European Central Bank on Thursday left interest rates unchanged (http://www.marketwatch.com/story/european-central-bank-says-now-plans-to-leave-rates-on-hold-at-least-through-first-half-2020-2019-06-06), and extended the period it expects rates to remain on hold through at least the first half of 2020. The ECB had previously indicated rates would remain on hold through the end of 2019. It also announced the terms of its third round of targeted longer-term refinancing operations.

U.S. President Donald Trump tweeted an update on discussions in Washington, D.C. with representatives of the Mexican government, saying that "progress is being made, but not nearly enough". The U.S. will levy tariffs on Mexico starting Monday, barring a breakthrough.

The International Monetary Fund revised down its GDP expectations for China to 6.2% for 2019 and 6% for 2020, reflecting the potential impact of trade tensions with the U.S. Managing Director Christine Lagarde told Reuters (https://www.reuters.com/article/us-g20-japan-imf-lagarde/imfs-lagarde-says-tariff-actions-dont-pose-global-recession-threat-idUSKCN1T62Y2?il=0) that the international body's base case was that tariffs might dampen growth but would not tip the global economy into recession.

Which stocks are active?

Rolls-Royce Holdings PLC (RR.LN) shares moved 1.5% higher on news its pensions unit had struck a GBP4.6 annuity deal with Legal & General Group PLC (LGEN.LN), the insurance company.

Entertainment One Ltd. (ETO.LN) rebounded 15.1% after issuing a statement refuting a Variety article saying Mark Gordon, President and Chief Content Officer of EOne's film and TV unit, was in talks to exit his role. Shares had fallen 17% Wednesday after the initial Variety report.

(END) Dow Jones Newswires

June 06, 2019 09:45 ET (13:45 GMT)

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