Europe down on sale of shares

Malta Independent - - FINANCIAL -

On Fri­day the Euro­pean stock mar­ket took a hit, par­ing its big­gest weekly rally in two months, amid in­vestors’ rush to sell com­pany stakes.

Poly­metal In­ter­na­tional Plc sank 8.6 per­cent, drag­ging com­mod­ity pro­duc­ers down, af­ter two in­vestors said they’ll sell 13 mil­lion shares of the miner. Mon­cler SpA, the Ital­ian maker of lux­ury ski­wear, dropped 2.6 per­cent and Scout24 AG, a Ger­man op­er­a­tor of on­line clas­si­fieds busi­nesses, fell 4.1 per­cent af­ter share­hold­ers also stock a stake. Caix­a­Bank SA also sold shares, los­ing 3.7 per­cent and lead­ing lenders lower, to fund its takeover of Por­tu­gal’s Banco BPI SA.

While Euro­pean eq­ui­ties have re­bounded this week, skep­ti­cism re­mains about the ef­fi­cacy of Euro­pean Cen­tral Bank stim­u­lus amid fall­ing profit growth and eco­nomic data that are back to miss­ing fore­casts. The Stoxx Europe 600 In­dex lost 0.7 per­cent at 9:54 a.m. in Lon­don, while a Bank of Amer­ica Corp. re­port showed fund man­agers have with­drawn money from the re­gion’s eq­ui­ties for a 33rd straight week, ex­tend­ing a record streak of out­flows. Since the end of May, the bench­mark gauge’s 100-day mov­ing av­er­age has been hov­er­ing around the same level.

On Fri­day, the lenders fell from an al­most two-week high, with Span­ish firms lead­ing the losses. Deutsche Bank AG, down 1.5 per­cent and trad­ing near a record low, has been par­tic­u­larly in fo­cus af­ter the U.S. sought $14 bil­lion to set­tle claims re­lated to the sale of mort­gage-backed se­cu­ri­ties, and Ger­man politi­cians are in­creas­ingly con­cerned about the com­pany’s fi­nances.

Asian stocks fell for the first time in six days, with the re­gional bench­mark gauge par­ing the big­gest weekly ad­vance since July, as Ja­panese ex­porters re­treated and a rally in Hong Kong eq­ui­ties lost steam. The MSCI Asia Pa­cific In­dex dropped 0.2 per­cent to 142.00 as of 4:10 p.m. in Hong Kong, halt­ing a five­day in­crease.

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.