Europe fluc­tu­ates on earn­ings re­ports

Malta Independent - - FINANCIAL -

On Thurs­day, UK gilts led a sell­off in gov­ern­ment bonds and the dol­lar rose as in­vestors added to bets that cen­tral banks around the world will be­come less ac­com­moda­tive as the econ­omy strength­ens. Stocks in Europe fluc­tu­ated amid a mixed batch of earn­ings re­ports.

Yields on Bri­tain’s gilts jumped to the high­est since the na­tion voted to quit the Eu­ro­pean Union fol­low­ing a re­port that showed third-quar­ter growth ex­ceeded econ­o­mist es­ti­mates. The dol­lar climbed ver­sus most of its peers on con­fi­dence that the Fed­eral Re­serve will raise in­ter­est rates this year and Nor­way’s krone surged after the cen­tral bank kept its bench­mark in­ter­est rate un­changed for a fourth meet­ing. Crude oil traded be­low $50 a bar­rel amid doubts that OPEC will im­ple­ment its first out­put cuts in eight years. The Stoxx Europe 600 In­dex swung be­tween gains and losses.

Im­plied yields on short-ster­ling fu­tures con­tracts ad­vanced, a sign in­vestors were par­ing bets that the Bank of Eng­land will cut in­ter­est rates again to cush­ion the blow from the Brexit ref­er­en­dum. Its next in­ter­est-rates de­ci­sion is sched­uled for 3 Novem­ber.

Span­ish un­em­ploy­ment fell to the low­est in more than six years, led by a surge in ser­vices jobs as Act­ing Prime Min­is­ter Mar­i­ano Ra­joy moves closer to form­ing a gov­ern­ment after a 10month po­lit­i­cal dead­lock. The job­less rate dropped to 18.9% in the three months through Septem­ber, the Na­tional Sta­tis­tics In­sti­tute said in Madrid yes­ter­day.

Asian stocks fell as oil ex­plor­ers pushed down Hong Kong gauges, while in­vestors weighed earn­ings at com­pa­nies from Sam­sung Elec­tron­ics Co. to Orix Corp. Ja­panese shares re­treated from a six-month high. The MSCI Asia Pa­cific In­dex dropped 0.6% to 139.09 as of 4.03pm in Hong Kong, poised for its first monthly de­cline since June.

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