Euro­pean shares con­tinue to fall

Malta Independent - - FINANCIAL -

On Wed­nes­day Euro­pean shares fell for an eighth day, in­ten­si­fy­ing a global sell­off, as a gauge of mar­ket tur­moil posted its long­est jump since 2011.

Al­most all in­dus­try groups in the Stoxx Europe 600 In­dex fell, tak­ing the gauge down 0.7 per­cent at 8:25 a.m. in Lon­don. Fi­nan­cial firms slid the most, while au­tomak­ers slipped with a rise in the euro. The VS­toxx In­dex, which mea­sures volatil­ity ex­pec­ta­tions for the re­gion, added 2.8 per­cent, tak­ing its ad­vance into an eighth day, the long­est streak in more than five years.

Euro­pean gov­ern­ment bonds ad­vanced as in­vestors sought their rel­a­tive safety af­ter the lat­est polls sug­gested that the out­come of next week’s U.S. pres­i­den­tial elec­tion is not clear cut.

Tight­en­ing polls ahead of the U.S. pres­i­den­tial elec­tion are in­creas­ing anx­i­ety in a mar­ket that’s al­ready suf­fer­ing from skep­ti­cism about the eco­nomic re­cov­ery and con­cern about the path of cen­tral-bank stim­u­lus. With a val­u­a­tion of about 14 times es­ti­mated earn­ings, com­pa­nies in the Stoxx 600 are 13 per­cent cheaper than those on the S&P 500 In­dex.

Asian stocks fell the most in al­most five weeks and volatil­ity gauges spiked amid po­lit­i­cal tur­moil in South Korea and grow­ing angst over next week’s U.S. pres­i­den­tial elec­tion. A stronger yen weighed on Tokyo shares. The MSCI Asia Pa­cific In­dex fell 1.1 per­cent to 138.07 as of 4:29 p.m. in Hong Kong amid a global sell­off as fi­nance and con­sumer com­pa­nies paced losses.

Emerg­ing-mar­ket shares headed for their big­gest de­cline in al­most three weeks af­ter a poll showed Don­ald Trump lead­ing Hil­lary Clin­ton in the U.S. pres­i­den­tial elec­tion race, sap­ping demand for higher-yield­ing as­sets.

Oil fell to the low­est level in more than a month af­ter weekly in­dus­try data showed U.S. crude stock­piles ex­panded while sup­plies from some OPEC mem­bers in­creased.

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