Euro­pean socks lit­tle changed

Malta Independent - - FINANCIAL -

On Tues­day Euro­pean stocks were lit­tle changed as in­vestors as­sessed val­u­a­tions be­fore the Fed­eral Re­serve’s Wed­nes­day meet­ing.

The Stoxx Europe 600 In­dex rose 0.1 per­cent to 341.57 at 9:58 a.m. in Lon­don. The Fed’s pol­icy de­ci­sion is in fo­cus for in­di­ca­tions of the health of the world’s big­gest econ­omy and the likely tra­jec­tory of in­ter­est rates. Econ­o­mists and in­vestors ex­pect the cen­tral bank to keep bor­row­ing costs un­changed. De­cem­ber is the ear­li­est month with at least even odds of a hike.

Euro­pean eq­ui­ties have os­cil­lated amid mixed eco­nomic data and signs that cen­tral banks may no longer be will­ing to un­ques­tion­ingly in­crease stim­u­lus mea­sures. The Stoxx 600 has failed to main­tain the rally that briefly saw it erase the de­cline sparked by the U.K.’s sur­prise vote in June to leave the Euro­pean Union. It closed Fri­day at a six-week low, and is cur­rently 1.4 per­cent below its pre-Brexit level. It trades at about 14.8 times es­ti­mated earn­ings, near its low­est val­u­a­tion in two months.

Eq­uity bench­marks in Spain, Por­tu­gal and Italy posted the big­gest de­clines among western-Euro­pean mar­kets to­day, as len­ders led losses in the re­gion, with Banca Popo­lare di Milano Scarl and Caix­aBank SA fall­ing at least 2.1 per­cent.

Asian stocks rose for a third day in light trad­ing as in­vestors waited for pol­icy de­ci­sions from the Fed­eral Re­serve and the Bank of Ja­pan. The MSCI Asia Pa­cific In­dex climbed 0.3 per­cent to 138.71 as of 4:01 p.m. in Hong Kong, with vol­umes at 85 per­cent of the three­month av­er­age. Ja­pan’s Topix in­dex rose 0.4 per­cent as mar­kets re­opened after a hol­i­day on Monday, with the yen strength­en­ing 0.3 per­cent against the dol­lar.

A gauge of emerg­ing-mar­ket stock volatil­ity was near the high­est level since June as traders de­bated whether the Fed­eral Re­serve and Bank of Ja­pan will ad­just pol­icy at meet­ings this week.

This ar­ti­cle was com­piled by Valletta Fund Man­age­ment Lim­ited, a mem­ber of the BOV Group.Valletta Fund Man­age­ment,TG Com­plex, Suite 2, Level 3, Brew­ery Str., Mriehel BKR 3000 Freep­hone: 80072344. E-mail: in­fovfm@bov.com. Web­site: www.vfm.com.mt. Valletta Fund Man­age­ment Lim­ited is li­censed by the MFSA.

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