Goldman said the potential for further falls in the euro was “still substantial”, predicting a swift return to 12-year lows around $1.05 hit in March if the European Central Bank delivers more easing.
Advertisement
Port operator global Container Terminal Services Inc. was the biggest gainer among the 20 most active stocks, as it jumped 5.3 percent to P81.30.
The pan-European FTSEurofirst 300 stocks index rose 2.1 per cent. An increased full-year sales outlook from Swiss drugmaker Roche helped support the index.
“You combine what the ECB is now saying with (the fact) that the Fed is not going to be going aggressively and that the Bank of Japan is going to want to get involved, then you say ‘Blimey!'”
“Short-term inflation expectations have declined but more medium- to long-term inflation expectations, after a few decline following our last meeting have now recovered and are basically unchanged since then”, European Central Bank President Mario Draghi said in a news conference.
Stocks across the board rose after ECB chief Mario Draghi said Thursday that the bank will consider bolstering its bond-buying program this year, sending European and USA stocks higher.
The euro continued to slip after marking its largest one-day percentage drop against the dollar in nine months on Thursday. Still, the USA currency resisted falling further as market players found it hard to step up dollar selling on the back of hopes for additional monetary easing by the Bank of Japan at its policy-setting meeting on October 30.
But another disappointing USA jobs report next month after October’s weaker-than-expected growth “might be cause for further pause”, he said.
The lurch lower in the euro will be a welcome boost for euro zone equities and export-heavy stocks that have been battling against the appreciation in the single currency in recent months. The S&P 500 gained 17.63 points, or 0.86 percent, to 2,070.14. After rising as high as 96.579 in early Asian trade, it was last holding at 96.337.DXY, up 1.9 percent for the week.
The Malaysian ringgit and the Indonesian rupiah both rose 0.7% against the dollar, while the Australian dollar climbed 0.78% against its United States counterpart.
Brent added 0.4 percent to $48.28 a barrel, but was on track for a weekly loss of more than 4 percent.
ENERGY: In oil futures trading, benchmark US crude rose 12 cents to $45.50 a barrel in electronic trading on the New York Mercantile Exchange.
Advertisement
Sterling gold prices also rose sharply, breaking above £765 for the first time since June.
