Com­mod­ity pro­duc­ers push Europe lower

Malta Independent - - FINANCIAL -

On Fri­day com­mod­ity pro­duc­ers dragged down Euro­pean eq­ui­ties as Mario Draghi in­di­cated the re­gion’s econ­omy still needs stim­u­lus.

The Stoxx Europe 600 In­dex fell 0.3 per­cent at 11:13 a.m. in London, trim­ming its weekly gain to 0.7 per­cent. The Euro­pean Cen­tral Bank pres­i­dent said the re­cov­ery isn’t strong enough yet and the cur­rent level of mone­tary sup­port is key. Min­ers and en­ergy pro­duc­ers de­clined with com­modi­ties, while bond prox­ies such as util­i­ties and tele­com com­pa­nies dropped as global bonds headed for their big­gest two-week slide in at least 26 years.

While Euro­pean eq­ui­ties are up for a sec­ond weeks, the mar­ket has been hit by large in­tra­day swings. The Stoxx 600 has al­ter­nated be­tween gains and losses dur­ing mar­ket ses­sions for nine straight days, its long­est streak in two years. Af­ter the ini­tial rally that fol­lowed Don­ald Trump’s pres­i­den­tial win, the gauge has failed to keep its mo­men­tum. Among stocks mov­ing on cor­po­rate news, UniCredit SpA fell 1.6 per­cent af­ter say­ing it will an­nounce the re­sults of a strate­gic re­view on Dec. 13 that may in­clude a share sale and fur­ther cost-cut­ting mea­sures. La­fargeHol­cim Ltd. de­clined 3.4 per­cent af­ter cut­ting its earnings and cash flow tar­gets for 2018.

Asian stocks fell, with the re­gional gauge head­ing for a fourth weekly de­cline, af­ter Fed­eral Re­serve Chair Janet Yellen sig­naled the U.S. cen­tral bank is close to rais­ing in­ter­est rates. The MSCI Asia Pa­cific In­dex re­treated 0.5 per­cent to 134.12 as of 4:01 p.m. in Hong Kong, tak­ing its loss this week to 0.9 per­cent. Ja­pan’s Nikkei 225 Stock Av­er­age en­tered a bull mar­ket, while the Topix in­dex closed more than five points short. Hong Kong’s Hang Seng In­dex rose for the first time in three days, the Shang­hai Com­pos­ite In­dex dropped and the Jakarta Com­pos­ite In­dex led de­clines in South­east Asia.

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