Euro­pean shares down for sec­ond day

Malta Independent - - FINANCIAL -

While lenders are head­ing for their big­gest three-day gain in a month fol­low­ing a re­port that the Euro­pean Cen­tral Bank has had dis­cus­sions about how to end its as­set-pur­chase pro­gramme, the Stoxx Europe 600 In­dex is fall­ing for a sec­ond day. A wind­ing down of stim­u­lus mea­sures could bring respite to the be­lea­guered in­dus­try af­ter con­cerns about prof­itabil­ity in a low-rate en­vi­ron­ment turned them into this year’s worst per­form­ers.

In­vestors are await­ing the ECB’s ac­count of its last pol­icy meet­ing to be re­leased later to­day for de­tails about its pro­gramme, af­ter Pres­i­dent Mario Draghi down­played the need for ad­di­tional stim­u­lus in Septem­ber. At the same time, a re­port on Thurs­day showed Ger­man fac­tory orders jumped more than pro­jected, while a Cit­i­group Inc. in­dex in­di­cates that re­cent eco­nomic data have beaten fore­casts.

On Thurs­day, the Stoxx 600 slid 0.2% at 11.44am in Lon­don, re­vers­ing an ad­vance of as much as 0.4%. The Stoxx 600 Banks In­dex added 0.5%, tak­ing its three-day gain to 2.8%. On Wed­nes­day, the lender’s gauge ral­lied 1.4%, while the broader bench­mark fell 0.6%, mark­ing the big­gest per­for­mance gap since Au­gust.

Cit­i­group up­graded lenders’ shares, say­ing that risks in Europe ap­pear to be more spe­cific to com­pa­nies than sys­temic. Caixa Bank SA and Banco Bil­bao Viz­caya Ar­gen­taria SA led an ad­vance in Span­ish lenders. France’s So­ci­ete Gen­erale SA gained 1.6%, while Deutsche Bank AG climbed for a sixth day, even af­ter an au­dit com­mis­sioned by Ger­many’s reg­u­la­tor showed it mis­marked dozens of trans­ac­tions on its own books. It’s re­bounded 15% from its record low last week.

Asian stocks rose as Ja­panese shares climbed af­ter the yen de­clined and an overnight gain in crude oil drove a gauge of en­ergy pro­duc­ers to the high­est level in more than a year. The MSCI Asia Pa­cific In­dex climbed 0.4% to 140.85 as of 4.10pm in Hong Kong, as a mea­sure of en­ergy stocks jumped the most among 11 in­dus­try groups.

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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