Euro­pean stocks fall for fourth time in five days

Malta Independent - - FINANCIAL - 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: in­ Web­site: Val­letta

On Wednes­day Euro­pean stocks fell for the fourth time in five days as in­vestors spec­u­lated on a Fed­eral Re­serve rate in­crease this year.

The Stoxx Europe 600 In­dex slid 0.5 per­cent at the close, with min­ers and en­ergy shares lead­ing de­clines. The bench­mark ex­tended losses after U.S. mar­kets opened, as Al­coa Inc. kicked off the earn­ings sea­son there by post­ing worse-than-fore­cast quar­terly profit. 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. A re­bound on Mon­day spurred by en­ergy pro­duc­ers was short-lived as con­cerns resur­faced about whether the U.S. econ­omy is strong enough to with­stand higher bor­row­ing costs. The Stoxx 600 fell for four of the past five weeks as traders boosted bets for a rate in­crease amid im­prov­ing data.

Euro­pean stock in­vestors are also 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.

The FTSE 100 In­dex, which rose as much as 0.5 per­cent to an in­tra­day record, closed 0.4 per­cent lower. While the U.K. bench­mark has posted the big­gest rally among de­vel­oped mar­kets this year, strate­gists say it will lose mo­men­tum be­fore the year is up.

Asian stocks headed for a fourth day of de­clines after U.S. mar­kets slumped on dis­ap­point­ing earn­ings, volatil­ity spiked, and a stronger yen weighed on Ja­panese shares. The MSCI Asia Pa­cific In­dex lost 0.4 per­cent to 139.25 as of 9:08 a.m. in Tokyo, while Ja­pan’s Topix in­dex sank 0.7 per­cent.

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