Euro­pean stocks down af­ter six pos­i­tive days on con­cern re­lated to the tight­en­ing of mon­e­tary pol­icy

Malta Independent - - FINANCIAL -

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: in­fovfm@bov.com. Web­site: www.vfm.com.mt. Val­letta Fund Man­age­ment Lim­ited is li­censed by the MFSA.

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