Euro strength­ens on Ger­man growth data

Malta Independent - - FINANCIAL -

On Tues­day Euro­pean stocks tried and failed to shrug off the neg­a­tive sen­ti­ment that spurred broad-based de­clines in Asia, even­tu­ally re­vers­ing gains as the re­gion’s sin­gle cur­rency strength­ened on Ger­man growth data. Bonds turned pos­i­tive as the world’s most pow­er­ful cen­tral bankers gath­ered in Frank­furt, and both the dol­lar and pound slipped.

The Stoxx Europe 600 In­dex re­treated as the euro ad­vanced against all its G-10 peers af­ter Ger­man GDP came in well above es­ti­mates in the third quar­ter. Min­ing com­pa­nies led the drop, with many com­mod­ity prices also fall­ing in the wake of data show­ing China’s econ­omy mod­er­at­ing. That also weighed on Asian eq­uity gauges, though the Nikkei closed lit­tle changed af­ter drop­ping for four days. The Bri­tish pound was tipped lower as in­fla­tion missed fore­casts, and the dol­lar broke out of a tight range to weaken as traders con­tinue to weigh the chances of a mean­ing­ful tax over­haul.

The Stoxx Europe 600 In­dex sank 0.2 per­cent as of 10:37 a.m. London time, hit­ting the low­est in seven weeks with its sixth con­sec­u­tive de­cline. The MSCI All-Coun­try World In­dex fell less than 0.05 per­cent to the low­est in more than two weeks. The U.K.’s FTSE 100 In­dex jumped 0.1 per­cent. Ger­many’s DAX In­dex gained less than 0.05 per­cent. The MSCI Emerg­ing Mar­ket In­dex rose 0.1 per­cent, the largest ad­vance in a week. Fu­tures on the S&P 500 In­dex dipped 0.1 per­cent to the low­est in more than a week. The Nikkei 225 Stock Av­er­age closed lit­tle changed, while the Topix in­dex lost 0.3 per­cent in a fourth day of losses. The MSCI Asia Pa­cific In­dex fell 0.3 per­cent in a third day of losses.

Gold fell 0.4 per­cent to $1,273.49 an ounce, the weak­est in more than a week. West Texas In­ter­me­di­ate crude de­clined 0.3 per­cent to $56.58 a bar­rel, the low­est in more than a week.

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