Euro­pean stocks end their long­est los­ing streak in two years

Malta Independent - - FINANCIAL -

Euro­pean stocks yes­ter­day halted their long­est los­ing streak in two years, ex­tend­ing gains as Lon­don judges de­cided the UK has to hold a vote in Par­lia­ment be­fore start­ing the two-year count­down to Brexit.

The Stoxx Europe 600 In­dex climbed 0.4% at 10.23am in Lon­don af­ter fall­ing for eight straight days. It pared an ad­vance of as much as 0.7% as the UK gov­ern­ment has al­ready set aside time to ap­peal the Brexit rul­ing. The FTSE 100 In­dex was lit­tle changed, eras­ing ear­lier gains amid a rise in the pound.

Euro­pean shares are re­bound­ing from a four-month low, helped by gains of more than 4.5% in So­ci­ete Gen­erale SA and ING Groep NV af­ter re­port­ing earn­ings that beat an­a­lyst pro­jec­tions.

In­vestors re­main scep­ti­cal on Euro­pean shares, with the Stoxx 600 al­most 60% more volatile than the MSCI All-Coun­try World In­dex. Mixed earn­ings re­ports, un­cer­tainty about the US pres­i­den­tial elec­tion and lin­ger­ing con­cerns about the strength of Europe’s econ­omy have weighed on the re­gion’s stocks, which are head­ing for their first year of de­clines since the height of the sov­er­eign-debt cri­sis in 2011.

On Thurs­day, though, Euro­pean shares saw a respite, ris­ing for the first time in 10 days. Gains at SocGen and ING helped banks re­bound af­ter four straight days of losses. That was the long­est long­est run of drops since Au­gust for the gauge track­ing the in­dus­try, which is back to be­ing the big­gest Stoxx 600 de­cliner of the year.

Asian stocks out­side Ja­pan dropped to­ward a three­month low amid prospects for higher US bor­row­ing costs next month and mount­ing con­cern over the tightening US pres­i­den­tial race. The MSCI Asia Pa­cific ex­clud­ing Ja­pan In­dex fell 0.2% to 437.66 at 4.10 p.m. in Hong Kong, led by tech­nol­ogy and util­ity shares.

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