Euro­pean stocks neg­a­tive on dis­ap­point­ing re­sults

Malta Independent - - BUSINESS & FINANCE -

On Fri­day Euro­pean stocks fell for a fifth day as com­pa­nies re­ported dis­ap­point­ing re­sults while a bond rout abated and met­als ral­lied.

The Stoxx Europe 600 In­dex headed for its long­est los­ing streak in six weeks after An­heuser-Busch InBev NV posted a sur­prise drop in profit and Novo Nordisk A/S, the world’s big­gest maker of in­sulin, cut its long-term growth tar­get. Ger­man bunds were lit­tle changed fol­low­ing a sell­off this week spurred by spec­u­la­tion the Euro­pean Cen­tral Bank along with other global pol­icy mak­ers will rein in stim­u­lus. A gauge of dol­lar strength was near a seven-month high be­fore the U.S. re­ports gross do­mes­tic prod­uct. Alu­minum rose to a 15month high after a rally in iron ore prices in China.

The Stoxx 600 fell 0.5 per­cent at 10:51 a.m. in Lon­don. An in­dex of ex­ec­u­tive and con­sumer sen­ti­ment in the re­gion rose to 106.3 from 104.9 in Septem­ber, the Euro­pean Com­mis­sion in Brus­sels said Fri­day. That’s the strong­est read­ing since De­cem­ber and beats the me­dian es­ti­mate in a Bloomberg sur­vey, which was for an un­changed read­ing.

The data of­fer a glimpse of the euro area’s eco­nomic per­for­mance after the U.K.’s de­ci­sion to leave the Euro­pean Union in­creased down­side risks to the fragile and un­even recovery. Diverg­ing growth rates are keep­ing pres­sure on the Euro­pean Cen­tral Bank to main­tain un­prece­dented stim­u­lus to strengthen the econ­omy and bring in­fla­tion back to its goal of just un­der 2 per­cent.

Asian stocks headed for a weekly drop as Chi­nese shares re­treated and in­vestors weighed mixed earn­ings re­ports be­fore cen­tral bank meet­ings and the U.S. elec­tion. Ja­panese eq­ui­ties ral­lied after the yen fell. The MSCI Asia Pa­cific In­dex lost 0.7 per­cent to 138.77 as of 4:02pm in Hong Kong and was lit­tle changed on Fri­day.

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: in­ Web­site: Val­letta Fund Man­age­ment Limited is li­censed by the MFSA.

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