Euro­pean stocks ex­pe­ri­ence best week in a month

Malta Independent - - BUSINESS & FINANCE -

Euro­pean stocks lost mo­men­tum on the fi­nal day of their best week in a month amid mixed earn­ings re­ports.

In a week dom­i­nated by earn­ings re­ports and the Euro­pean Cen­tral Bank’s pol­icy up­date fol­low­ing spec­u­la­tion about an ex­ten­sion to quan­ti­ta­tive eas­ing, the re­gion’s eq­ui­ties climbed for three straight ses­sions be­fore stalling. The Stoxx Europe 600 In­dex was un­changed at the close on Fri­day, tak­ing its five-day ad­vance to 1.3 per­cent.

Eas­ing in­vestor con­cern that mone­tary poli­cies will be tight­ened too soon, ECB Pres­i­dent Mario Draghi said on Thurs­day it’s un­likely that its bond-buy­ing plan will end abruptly. Still, he left ques­tions unan­swered about how the cen­tral bank will ex­tend, ad­just or wind down the pro­gram that’s cur­rently set to ex­pire in March. Of­fi­cials next meet in De­cem­ber.

Min­ers led gains in the Stoxx 600, clos­ing at a 14-month high fol­low­ing a rise in the dol­lar.

The Stoxx 600 has risen 0.4 per­cent this month, eras­ing a drop of as much as 2.1 per­cent. The gauge has risen in five of the past six Oc­to­bers. Still, a slump of 5.9 per­cent this year has dragged its val­u­a­tion to 14.8 times the es­ti­mated earn­ings of its mem­bers, mak­ing it about 11 per­cent cheaper than the S&P 500 In­dex.

The Asian equity mea­sure has climbed 1.1 per­cent this week as data in­di­cated Chi­nese eco­nomic growth is sta­bi­liz­ing. As in­vestors brace for higher U.S. bor­row­ing costs be­fore the end of the year and a pres­i­den­tial elec­tion next month, com­pa­nies from Mi­crosoft Corp. to Kep­pel Corp. in Sin­ga­pore are up­dat­ing share­hold­ers on profit per­for­mance.

Emerg­ing-mar­ket stocks fell, re­duc­ing their sec­ond weekly gain in Oc­to­ber, and cur­ren­cies de­clined as in­vestors gauged whether fur­ther gains in de­vel­op­ing-na­tion as­sets are jus­ti­fied as the U.S. moves closer to rais­ing bor­row­ing costs. The MSCI Emerg­ing Mar­kets In­dex gained 1.6 per­cent this week.

This ar­ti­cle was com­piled byVal­letta 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 Fund Man­age­ment Lim­ited is li­censed by the MFSA.

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