European shares down for second day
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: firstname.lastname@example.org. Website: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.