Euro­pean stocks lit­tle changed as lux­ury shares ad­vance

Malta Independent - - FINANCIAL -

On Tues­day Euro­pean stocks were lit­tle changed as in­vestors spec­u­lated on a Fed­eral Re­serve rate in­crease this year, while lux­ury shares ad­vanced.

The Stoxx Europe 600 In­dex fell 0.2 per­cent at 10:26 a.m. in Lon­don. Cor­po­rate earn­ings are also in fo­cus, with LVMH among the big­gest gain­ers in the bench­mark, up 5.5 per­cent after post­ing sales that topped an­a­lysts’ es­ti­mates. Chris­tian Dior SE and Swatch Group AG rose at least 3.8 per­cent. More than 150 Stoxx 600 com­pa­nies are due to re­port re­sults this month.

Euro­pean stocks have had a shaky start in Oc­to­ber, a month in which they have posted gains in five of the past six years. The Stoxx 600 on Fri­day ex­tended its fourth weekly drop in five amid strong U.S. data that stoked ex­pec­ta­tions for higher bor­row­ing costs, and a re­spite yes­ter­day proved short-lived.

In ad­di­tion to cen­tral-bank woes, Euro­pean stock in­vestors are fac­ing po­lit­i­cal risks from Italy’s ref­er­en­dum and the fall­out of U.K.’s se­ces­sion vote as they head into the fi­nal months of the year. The re­gion’s eq­uity funds have seen out­flows for a record 35 weeks, a Bank of Amer­ica Mer­rill Lynch re­port showed last week, and the Stoxx 600 is poised to post its first an­nual drop since 2011.

Among other stocks ac­tive on Tues­day, Old Mu­tual Plc — which gets most of its rev­enue from South Africa — fell 3.2 per­cent in Lon­don after a re­port the coun­try’s fi­nance min­is­ter will be charged with fraud. Sep­a­rately, its wealth-man­age­ment unit said it ex­pects mar­ket con­di­tions to re­main dif­fi­cult be­cause of un­cer­tainty around Brexit.

Asian stocks fell the most this month as Sam­sung Elec­tron­ics Co. dragged down tech­nol­ogy shares, over­shad­ow­ing an oil-driven rally in en­ergy com­pa­nies. The MSCI Asia Pa­cific In­dex dropped 0.6 per­cent to 139.68 as of 4:05 p.m. in Hong Kong after climb­ing as much as 0.3 per­cent.

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