Euro­pean eq­ui­ties lower

Malta Independent - - FINANCIAL -

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: in­fovfm@bov.com. Web­site: www.vfm.com.mt. Val­letta Fund Man­age­ment Lim­ited is li­censed by the MFSA.

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