European shares little changed
On Monday European shares pared losses to trade little changed as gains in miners offset a decline in banks led by Deutsche Bank AG.
Germany’s biggest bank fell 1.9 percent as people familiar with the matter said talks with the U.S. Justice Department to resolve a probe into mortgage-backed securities are continuing, after Germany’s Bild newspaper reported that Chief Executive Officer John Cryan wasn’t able to reach an agreement at a meeting in Washington. A measure of commodity producers posted the best performance of the 19 industry groups on the Stoxx Europe 600 Index as metals prices rose.
The Stoxx 600 slipped 0.1 percent to 339.41 at 10:45 a.m. in London, after earlier falling as much as 0.6 percent. European shares last week capped their fourth weekly decline in five, after a rally from a June low petered out in early September. Investors withdrew money from the region’s equity funds for a record 35th week as of the 5 October a report from Bank of America Merrill Lynch showed on Friday.
Investors will be watching the upcoming reporting season for indications of the health of corporate Europe, with companies including LVMH Moet Hennessy Louis Vuitton SE and Givaudan SA among the first to release third-quarter earnings this week.
Goldman Sachs Group Inc. has warned that political risks, exacerbated by a weak economy in Europe and high stock prices in the U.S., make European and U.S. markets vulnerable to declines in the next three months. The firm projects that the S&P 500 Index and the Stoxx 600 will each drop by about 2 percent by December.
Asian stocks rose following the second U.S. presidential debate between Hillary Clinton and Donald Trump, while Thai shares tumbled after the royal palace said the king’s condition was unstable. The MSCI Asia Pacific excluding Japan Index added 0.1 percent as of 4 p.m. in Hong Kong.
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.