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Europe: Stock markets rebound at open

Monday, September 19, 2016 - 15:32
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[LONDON] European stocks markets rebounded at the start of trading on Monday, with all eyes on central banks ahead of key meetings this week in the United States and Japan.

At the open, London's benchmark FTSE 100 index jumped 0.9 per cent to 6,771.53 points compared with the close on Friday.

In the eurozone, Frankfurt's DAX 30 won 0.7 per cent to 10,349.87 points and the Paris CAC advanced 0.8 per cent to 4,368.85.

Asian markets mostly rose Monday as traders wait to see whether central banks press on with their loose monetary policies.

Concern that years of cheap cash could be coming to an end has roiled markets this month with conflicting comments from top Federal Reserve officials over the need for an interest rate hike fuelling uncertainty.

And a lack of any concrete promises from Tokyo about the Bank of Japan's plans have also been cause for worry, with years of bond-buying and government spending having little impact on the country's torpid economy.

Meanwhile the head of Germany's Bundesbank on Monday said that the European Central Bank must not allow low interest rates and monetary stimulus to last indefinitely, "Under no circumstances can interest rates remain so low for longer than is absolutely necessary with regard to price stability," German central bank president Jens Weidmann told a group of European newspapers.

AFP