Home Markets US and European stocks buoyed by ECB rate cut expectations

US and European stocks buoyed by ECB rate cut expectations

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US and European stocks soared on Friday as expectations the European Central Bank will cut interest rates rose, helping the dollar to hit a two-week high against the euro.

The dollar was also aided by promising data that showed a jump in US homebuilding permits to a seven-month high.

Read more: US stock markets jump after China hints at stimulus

However, the dollar pared gains against the euro when a report from the Der Spiegel said the German government was prepared to ditch its balanced budget rule and take on new debt to counter a possible recession.

Germanys finance ministry declined to comment on the report.

Germany and other eurozone government bond yields rose late on Friday in wake of the report.

The German 10-year bond yield rose -0.69 per cent, having earlier hit a record low of -0.73 per cent.

Meanwhile, technology shares boosted Wall Streets advances, but US stocks in general posted a third successive week of declines, largely due to the US-China trade war and an “inversion” of 2 and 10-year bond yields sparking recession fears.

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