Europe dragged down by min­ers and China wor­ries

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: in­fovfm@bov.com. Web­site: www.vfm.com.mt. Val­letta F

On Thurs­day re­newed wor­ries about the health of the global econ­omy, spurred by an un­ex­pected de­cline in Chi­nese ex­ports, sent Euro­pean stocks lower for a third day.

Min­ers fell from near a 14month high, with BHP Bil­li­ton Ltd. and Rio Tinto Group down at least 3.8%, af­ter a re­port show­ing ex­ports in the world’s big­gest com­mod­ity con­sumer ended a six-month streak of in­creases. Car­mak­ers also de­clined, send­ing Ger­many’s DAX In­dex down 1.1%. The Stoxx Europe 600 In­dex fell 1% at 11.09am in Lon­don.

The weak data add to wor­ries about Fed­eral Re­serve tight­en­ing of mone­tary pol­icy, US elec­tions and an Ital­ian ref­er­en­dum in Novem­ber, and the fall­out of Bri­tain’s se­ces­sion vote. Euro­pean stocks never fully re­cov­ered from a blow dealt by wor­ries about a China slow­down at the start of the year. While the Stoxx 600 has re­bounded from a two-year low in Fe­bru­ary, it re­mains 8.4% lower in 2016.

Con­cerns about cor­po­rate earn­ings has also weighed on eq­ui­ties, putting them on track for a third weekly de­cline. More than a 150 mem­bers in the Stoxx 600 are sched­uled to re­port re­sults this month, and an­a­lysts project a profit de­cline of 4.2% this year.

Asian stocks fell for a fifth day af­ter Fed­eral Re­serve min­utes boosted ex­pec­ta­tions US in­ter­est rates will rise by year-end and as a sur­prise de­cline in China’s ex­ports dragged Hong Kong shares lower. The MSCI Asia Pa­cific In­dex dropped 0.9% to 137.51 as of 4.01pm in Hong Kong, head­ing for its lowest close since 16 Septem­ber. Ja­pan’s Topix in­dex closed lit­tle changed, eras­ing a gain of as much as 0.9% ear­lier af­ter the yen rose against the dol­lar, sap­ping de­mand for ex­porters.

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