Euro­pean stocks re­treat af­ter their big­gest gain in a month

Malta Independent - - FINANCIAL -

On Wed­nes­day Euro­pean stocks re­treated af­ter their big­gest gain in a month, with earn­ings re­ports tak­ing a back seat as in­vestors await to­mor­row’s Euro­pean Cen­tral Bank meet­ing for pos­si­ble up­dates on the di­rec­tion of mon­e­tary pol­icy.

The Stoxx Europe 600 In­dex fell 0.3 per­cent to 341.59 at 10:53 a.m. in Lon­don, with so-called “bond­proxy” sec­tors in­clud­ing real es­tate and telecom­mu­ni­ca­tions, which lag the mar­ket when ex­pec­ta­tions of higher bond yields rise, among the worst per­form­ers. Min­ers and banks led a broad-based rally yes­ter­day on op­ti­mism mon­e­tary pol­icy will re­main sup­port­ive of growth.

The ECB’s Govern­ing Coun­cil con­cludes a two-day pol­icy meet­ing on Thurs­day and as credit data point to a de­cel­er­a­tion of the re­gion’s eco­nomic re­cov­ery, in­vestors will seek in­di­ca­tions of whether the cen­tral bank is pre­pared to take fur­ther steps to aug­ment its stim­u­lus pro­gram.

Af­ter reach­ing a four-month high in Septem­ber, Euro­pean eq­ui­ties failed to con­tinue the ad­vance on spec­u­la­tion cen­tral banks across the globe may tighten mon­e­tary pol­icy. The Stoxx 600 hasn’t posted back-to­back gains in more than two weeks, and has traded in a range of 18 points since mid-July.

Asian stocks rose for a sec­ond day af­ter data out of China showed Asia’s largest econ­omy re­mained sta­ble in the third quar­ter and spec­u­la­tion grew the Fed­eral Re­serve will stick to a grad­ual tight­en­ing of mon­e­tary pol­icy. The MSCI Asia Pa­cific In­dex added 0.3 per­cent to 139.82 as of 4:10 p.m. in Hong Kong, trim­ming a gain of as much as 0.4 per­cent af­ter the Chi­nese fig­ures were broadly in line with ex­pec­ta­tions. Asian shares were al­ready higher ahead of the much-an­tic­i­pated Chi­nese num­bers af­ter a gauge of global eq­ui­ties jumped the most in al­most four weeks on Tues­day amid mount­ing spec­u­la­tion that the Fed­eral Re­serve will boost in­ter­est rates in De­cem­ber then not rush fur­ther in­creases as the U.S. econ­omy re­mains mixed.

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.