Euro­pean stocks con­tinue to de­cline

Malta Independent - - FINANCIAL -

On Fri­day, a third day of losses sent Euro­pean stocks to­ward a weekly de­cline as in­vestors awaited a U.S. jobs re­port amid grow­ing bets for a Fed­eral Re­serve rate rise.

The Stoxx Europe 600 In­dex dropped 0.5 per­cent at 10:55 a.m. in Lon­don. The monthly pay­rolls re­port, fore­cast to show U.S. em­ploy­ers added jobs at a faster pace in Septem­ber, comes af­ter a string of strong data prompted traders to boost prospects for a Fed hike this year. That adds to con­cerns the Euro­pean Cen­tral Bank may turn less ac­com­moda­tive fol­low­ing re­ports it has held dis­cus­sions on the best way to ta­per quan­ti­ta­tive eas­ing.

Stoxx 600 lenders rose for a fourth day, widen­ing a di­ver­gence from the broader mar­ket. A tight­en­ing in global mon­e­tary pol­icy could bring respite to banks, which have been this year’s worst per­form­ers amid con­cerns about prof­itabil­ity in a low-rate en­vi­ron­ment. Deutsche Bank AG rose 1.3 per­cent af­ter peo­ple fa­mil­iar with the mat­ter said it’s hold­ing in­for­mal talks with se­cu­ri­ties firms to ex­plore options in­clud­ing rais­ing cap­i­tal.

Traders are pric­ing in a 64 per­cent chance of higher U.S. bor­row­ing costs in De­cem­ber, up from al­most even odds last week. Odds for a Novem­ber hike are at 24 per­cent.

Among stocks ac­tive on cor­po­rate news, Delta Lloyd NV added 2.1 per­cent af­ter re­ject­ing NN Group NV’s un­so­licited 2.4 bil­lion euro ($2.7 bil­lion) cash of­fer, say­ing it un­der­val­ued the com­pany.

E.ON SE rose 2.4 per­cent af­ter a re­port that Ce­vian Cap­i­tal AB is eval­u­at­ing buy­ing a 10 per­cent stake in the Ger­man util­ity.

Asian stocks fell ahead of a closely watched U.S. pay­rolls re­port as stronger eco­nomic data fu­eled bets the Fed­eral Re­serve will raise in­ter­est rates this year. The MSCI Asia Pa­cific In­dex lost 0.3 per­cent to 140.20 as of 4:11 p.m. in Hong Kong, par­ing its weekly gain.

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