European stocks cheap­est when com­pared to their peers

Malta Independent - - FINANCIAL -

On Thurs­day, in­vestors re­mained re­luc­tant to dive into European eq­ui­ties, even as they were the cheap­est in five months rel­a­tive to global peers.

While the Stoxx Europe 600 In­dex has re­mained calm in re­cent days, it has al­ter­nated be­tween in­tra­day gains and losses for eight straight ses­sions, the long­est streak in two years. It trades at its low­est val­u­a­tion since June rel­a­tive to a mea­sure track­ing global shares. It added 0.2% at 11.04am in Lon­don, after ear­lier fall­ing 0.3% and ris­ing as much.

European eq­ui­ties have failed to main­tain mo­men­tum after the ini­tial jump that fol­lowed Don­ald Trump’s elec­tion, which cre­ated a diver­gence in per­for­mance among in­dus­tries. In­vestors stayed wary be­fore a busy po­lit­i­cal cal­en­dar that in­cludes a ref­er­en­dum in Italy next month and elec­tions in France and Ger­many next year.

The Stoxx 600 dropped 3.5% from a four-month high in Septem­ber through Wed­nes­day’s close. It has lost more than 7% this year, head­ing for its big­gest an­nual slide since the height of the sov­er­eign-debt cri­sis in 2011, amid con­cern over the ef­fi­cacy of cen­tral-bank stim­u­lus and po­lit­i­cal tur­moil.

Asian stocks mar­kets were mixed with gains in Sin­ga­pore, In­dia and the Philip­pines off­set­ting weak­ness in China, Ja­pan and South Korea as in­vestors waited for a speech by Fed­eral Re­serve Chair Janet Yellen.

About five stocks rose for ev­ery four that fell on the dol­lar-de­nom­i­nated MSCI Asia Pa­cific In­dex, which added 0.1% as of 12.47pm in Tokyo. The gauge is down more than 2% since Don­ald Trump’s shock US elec­tion win last week as in­vestors sold emerg­ing-mar­ket as­sets on bets Amer­i­can bor­row­ing costs will rise faster than pre­vi­ously fore­cast. Ja­pan’s Topix in­dex was flat on Wed­nes­day after climb­ing since the US elec­tion and is up around 19% from a Fe­bru­ary low, near a bull mar­ket.

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