Con­cern on health of global econ­omy pushes Europe lower

Malta Independent - - FINANCIAL -

Euro­pean stocks fell for the fourth time in five days amid re­newed con­cern about the health of the global econ­omy and spec­u­la­tion about cen­tral-bank pol­icy. All in­dus­try groups in the Stoxx Europe 600 In­dex slid, push­ing the bench­mark gauge down 0.7 per­cent at 10:58 a.m. in London. En­ergy com­pa­nies were among the worst per­form­ers as oil slipped to­ward $50 a bar­rel.

Af­ter the ini­tial re­bound that fol­lowed the aftermath of the U.K. se­ces­sion vote, Euro­pean stocks failed to push higher. Con­cerns about the global re­cov­ery, as well as spec­u­la­tion about Euro­pean Cen­tral Bank and Fed­eral Re­serve poli­cies, have dragged the Stoxx 600 down more than 3 per­cent from its Septem­ber high. The ECB will give its lat­est up­date on Thurs­day, and most economists sur­veyed

Cycli­cal com­pa­nies, such as com­mod­ity pro­duc­ers and banks, led the rise from the June low, through they’re now trad­ing near their high­est val­u­a­tions in two years rel­a­tive to de­fen­sive stocks. Firms JPMor­gan Chase & Co. and Mor­gan Stan­ley are say­ing the rally is un­war­ranted given the risks to global growth. An­a­lysts see profit at Stoxx 600 min­ers, en­ergy com­pa­nies and lenders fall­ing more than 17 per­cent this year.

The decline in en­ergy pro­duc­ers pushed the U.K.’s FTSE 100 In­dex down 0.8 per­cent. Pear­son Plc tum­bled 9.9 per­cent af­ter the world’s largest ed­u­ca­tion com­pany re­ported a sales drop.

Among other stocks mov­ing on cor­po­rate news, Banca Popo­lare di Mi­lano Scarl fell 4.6 per­cent, the most in Italy’s FTSE MIB In­dex, while Banco Popo­lare SC was lit­tle changed af­ter their share­hold­ers ap­proved a merger of the two com­pa­nies. Fi­nan­cial firms UniCredit SpA and As­si­cu­razioni Gen­er­ali SpA gained more than 1.8 per­cent.

Asian stocks out­side Ja­pan de­clined to­ward the low­est level in a month as casino op­er­a­tors tum­bled af­ter China de­tained em­ploy­ees of Aus­tralia’s Crown Re­sorts Ltd. Ja­panese shares ad­vanced as the yen weak­ened. The MSCI Asia Pa­cific Ex­clud­ing Ja­pan In­dex fell 0.7 per­cent to 443.29 as of 4:15 p.m. in Hong Kong.

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