Euro­pean stocks amid most volatile mar­kets in four months

Malta Independent - - FINANCIAL -

The Euro­pean stocks are amid the most volatile mar­kets in four months. On Fri­day, they ex­tended a streak with­out no­table gains to 11 days amid mixed earn­ings and on­go­ing jit­ters about the out­come of next week’s U.S. pres­i­den­tial elec­tion.

Er­ste Group Bank AG dragged lenders lower, los­ing 7.2 per­cent after Aus­tria’s big­gest bank fore­cast lower prof­itabil­ity next year.

The Stoxx Europe 600 In­dex slipped 1 per­cent to 328.32 at 11:24 a.m. in Lon­don and is head­ing for its worst week since Fe­bru­ary. A late sell­off erased gains yes­ter­day leav­ing the in­dex vir­tu­ally un­changed at the close, as in­vestors weighed bank earn­ings, the im­pli­ca­tions of a U.K. rul­ing on the Brexit process and dis­ap­point­ing U.S. data. Shares have also been hurt by opin­ion polls show­ing a dwin­dling lead for Demo­cratic pres­i­den­tial can­di­date Hil­lary Clin­ton be­fore Amer­ica votes on Tues­day. A mea­sure of share volatil­ity has risen for 10 straight days, it’s long­est run since 2011.

U.K. stocks fell the most among ma­jor west­ern-Euro­pean mar­kets, drop­ping for a fifth day amid a re­bound in the pound. The FTSE 100 In­dex lost 1.1 per­cent at 9:40 a.m. in Lon­don, tak­ing its slide for the week to 4 per­cent. The gauge, which ral­lied as much as 14 per­cent this year and reached a record in Oc­to­ber, is head­ing for its worst weekly de­cline since Jan­uary as the na­tion’s cur­rency strength­ened against all of its ma­jor peers. The eq­uity mea­sure is head­ing for its low­est level since mid-Septem­ber.

Asian stocks headed for the first back-to-back weekly drop in two months amid a global sell­off as in­vestors grew in­creas­ingly anx­ious be­fore next week’s U.S. pres­i­den­tial elec­tion and Tokyo shares sank for a sec­ond day. The MSCI Asia Pa­cific In­dex fell 0.9 per­cent to 136.67 as of 4:10 p.m. in Hong Kong, set for a 1.5 per­cent de­cline this week.

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