Euro­pean stocks lit­tle changed

Malta Independent - - FINANCIAL -

On Wed­nes­day an early rally in Euro­pean shares de­flated, leav­ing the mar­ket lit­tle changed. That’s been the state of play for in­vestors in re­cent days.

While Don­ald Trump’s elec­tion last week dom­i­nated mar­ket moves and cre­ated a rift among in­dus­tries, it has left the bench­mark gauge largely flat. But in­tra­day, in­vestors have had to con­tend with the wildest swings since Brexit, with the Stoxx Europe 600 In­dex fluc­tu­at­ing 1.4 per­cent on av­er­age this month. As of 10:41 a.m. in Lon­don, the gauge added 0.2 per­cent, giv­ing up gains as of much as 0.6 per­cent.

Since Trump’s elec­tion, fi­nan­cials firms have ral­lied amid a surge in govern­ment-debt yields, while bond prox­ies have dropped. Af­ter an ini­tial jump on the re­sult, the Stoxx 600 has barely moved in five days.

On Wed­nes­day, Pru­den­tial Plc was among the big­gest con­trib­u­tors to the move in the Stoxx 600, ris­ing 1.8 per­cent af­ter the in­surer said it will in­crease its div­i­dend amid a jump in sales in Asia. Bouygues SA climbed 4.9 per­cent as the French con­glom­er­ate re­ported an im­prove­ment in tele­com prof­itabil­ity. Bayer AG sank 5 per­cent, drag­ging down chem­i­cal com­pa­nies, af­ter is­su­ing 4 bil­lion eu­ros ($4.3 bil­lion) of con­vert­ible bonds.

An­a­lysts spent early Novem­ber warn­ing a Trump vic­tory in the U.S. pres­i­den­tial elec­tion would make the Fed­eral Re­serve less likely to raise in­ter­est rates. What hap­pened in­stead is that it made a De­cem­ber in­crease a near cer­tainty.

Asian stocks rose for the first time in four days amid a re­bound in emerg­ing-mar­ket as­sets that got bat­tered af­ter the U.S. elec­tion. Tokyo shares ral­lied to near a bull mar­ket. The MSCI Asia Pa­cific In­dex climbed 0.5 per­cent to 134.81 as of 4:01 p.m. in Hong Kong, while Ja­pan’s Topix in­dex jumped 1.3 per­cent.

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