European shares lit­tle changed

Malta Independent - - FINANCIAL -

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

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