Euro­pean stocks sta­ble as banks slide and min­ers gain

Malta Independent - - FINANCIAL -

On Tuesday Euro­pean stocks were lit­tle changed after a rally in com­mod­ity pro­duc­ers was tem­pered by losses in banks.

The Stoxx Europe 600 In­dex added less than 0.1 per­cent at 10:59 a.m. in London, giving up gains of as much as 0.4 per­cent. A gauge of min­ers rose to­ward its high­est level since Au­gust 2015, with An­glo Amer­i­can Plc and Rio Tinto Group climb­ing more than 2.5 per­cent.

Firms in Italy led losses among len­ders, with Uni-Credit SpA and UBI Banca SpA slid­ing at least 4 per­cent. Trad­ing in Banca Monte dei Paschi di Siena SpA was halted in Mi­lan after the stock swung from a rise of as much as 27 per­cent to a de­cline of 23 per­cent, after Chief Ex­ec­u­tive Of­fi­cer Marco Morelli pledged to be­gin talks with in­vestors to help raise cap­i­tal.

Lack­lus­ter moves plagued Euro­pean eq­ui­ties in the past two ses­sions, after op­ti­mism that mon­e­tary pol­icy will re­main sup­port­ive of growth sent the Stoxx 600 to a two-week high.

While ECB Pres­i­dent Mario Draghi eased in­vestor con­cern about its bond-buy­ing pro­gram end­ing too soon, he gave lit­tle in­di­ca­tion on how of­fi­cials will ex­tend, ad­just or wind down QE that’s set to ex­pire in March. Op­ti­mism he will tweak stim­u­lus in ways that will im­prove bank prof­itabil­ity boosted len­ders this month, be­fore to­day’s re­treat. The Stoxx 600 Banks In­dex fell 0.9 per­cent from its high­est level since May.

Asian stocks climbed after U.S. eco­nomic data gen­er­ated op­ti­mism about the health of the world’s largest econ­omy, while Ja­pan’s Topix in­dex rose as the yen weak­ened against the dol­lar. The MSCI Asia Pa­cific In­dex ad­vanced 0.4 per­cent as of 4 p.m. in Hong Kong after a U.S. man­u­fac­tur­ing gauge climbed to the high­est since 2015, boost­ing bets by traders for a rate hike by De­cem­ber to 71 per­cent.

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