European stocks down after six positive days on concern related to the tightening of monetary policy
European stocks snapped a sixday winning streak amid investor concern that the European Central Bank is moving toward tightening monetary policy.
The Stoxx Europe 600 Index fell 0.9 percent to 342.93 at 11:04 a.m. in London. Optimism had been tentatively returning, with the equity benchmark posting six straight days without losses, after euro-area economic data began beating forecasts again and concern over lenders eased.
Banks, which have lagged the market this year amid concern that lower interest rates are crimping profits, were little changed, supported by Italian lenders. Unione di Banche Italiane SpA and Banca Popolare dell’Emilia Romagna SC advanced 1.8 percent or more. Deutsche Bank AG, which has lost almost 50 percent of its value this year, extended gains into a fifth day — the longest winning streak in eight weeks — as fears that it may need to raise capital abated.
Banks helped Italy’s FTSE MIB limit losses to just 0.1 percent, for the best performance among major western-European markets. U.K. shares, which touched a record high yesterday as the tumbling pound boosted exporters, fell 0.5 percent, compared with declines of at least 0.7 percent for Germany’s DAX Index and France’s CAC 40 Index.
Confidence was also hit today by a report showing the region’s economy is losing steam, with a Purchasing Manages’ Index for the manufacturing and services sector falling in September from August. The volume of shares changing hands was more than a quarter higher than the 30-day average.
Asian stocks outside Japan dropped for the first time in three days on concern central banks will reduce stimulus, while the Topix index climbed after the yen weakened. The MSCI Asia Pacific Excluding Japan Index fell 0.3 percent to 455.11 as of 4:10 p.m. in Hong Kong, led by losses in Indonesia and New Zealand.
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: email@example.com. Website: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.