Europe down on sale of shares
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 report showed fund managers have withdrawn money from the region’s equities for a 33rd straight week, extending a record streak of outflows.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.