European stocks cheapest when compared to their peers
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.