European equities lower
On Friday winners and losers among European stocks in the immediate aftermath of Donald Trump’s election victory swapped places, sending equities lower. Industry groups that rallied as Trump defeated Hillary Clinton are losing ground, while those that were punished are recovering, on bets the moves went too far. Construction firms and drugmakers were among the worst decliners in the Stoxx Europe 600 Index, after rallying on Wednesday on speculation of higher infrastructure spending and less regulatory oversight, respectively. Banks and miners also slid.
The Stoxx 600 fell 0.3 percent at 11:34 a.m. in London for a second day of declines, as it failed to hold gains of as much as 0.7 percent at the open. That trimmed the benchmark’s biggest weekly advance since July. European equities are losing momentum after a three-day advance that broke their longest spell without gains since 1994.
Money managers focused on emerging markets tumbled on Friday on concern the Federal Reserve will become more aggressive in raising rates under a Trump-led administration. Ashmore Group Plc and Aberdeen Asset Management Plc lost at least 5.7 percent. Lender Standard Chartered Plc, which gets most of its revenue from Asia, slipped 5.7 percent.
Gains in carmakers tempered losses in the benchmark on Friday. Fiat Chrysler Automobiles NV, which gets most of its revenue from the Americas, rose 3.9 percent to a six-month high after Trump selected a prominent critic of global warming to lead his environment agency’s transition team. BMW AG and Volkswagen AG added at least 1.8 percent.
Asian shares fell, with emerging-market stocks leading declines on bets the Federal Reserve will raise interest rates faster than anticipated. The Shanghai Composite Index entered a bull market and financial firms in Tokyo and Sydney rallied. The MSCI Asia Pacific Index lost 0.8 percent as of 4:01 p.m. in Hong Kong, erasing earlier gains of as much as 0.4 percent.
This article was compiled by Valletta 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: email@example.com. Website: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.