Investors boosted the euro as they bid adieu to the now-former European Central Bank President, Mario Draghi. The pan-European Stoxx 600 climbed 0.3% to its highest since May 2018.
Draghi was credited for his expansion of ECB’s arsenal of crisis-fighting tools with innovative policies involving lower borrowing costs.
Italy was struggling with high borrowing costs while Greece needed a second bailout during the economic breakout. The Brexit deal was getting in the way of the euro’s growth along with it.
Draghi promised to preserve the euro through the ECB. He convinced the bank heads to back a plan to buy unlimited amounts of bonds for developing European countries.
The promise lead to heightened risk appetites until the market calmed. Draghi didn’t even need to use the program.
Some claim he almost single-handedly saved the euro crisis.
ECB’s new President, the bank’s first female head, Christine Lagarde, will start her operations on Monday.
Germany’s DAX consolidated its 2.1% October advance at $1.1140, while the Swedish crown gained 0.7%. Households also expect Turkey to cut back its 16.5% interest rates.
Jewelry as a European Stock Booster
Analysts anticipate an ascent for the European Stoxx 600 index with the luxury sector at its best candidates. Top luxury brand Louis Vuitton steps further into the American market.
LVMH approached Tiffany & Co with a $14.5 billion acquisition offer as the jewelry manufacturer struggles with the US-China tariff conflict.
High-end brands relied on Hong Kong as a major shopping hub, but the Hong Kong protests are still holding the business back. Tiffany offered more affordable items like pendants and earrings as retaliation.
LVMH had a market capitalization of 194 billion euros earlier this month, performing better than expected. The company also pushed past expectations last August.
Other luxury brands like Fendi, Christian Dior, Givenchy, and Veuve Cliquot champagne stood out as the top performers in Stoxx.