European stocks drop on Fed expectations

Tuesday, 31. May 2016 17:41

The last trading day in May ended with losses for most stocks across Europe. Investors seem to have turned their attention not to companies but rather on the prospects of the United States Federal Reserve's hike of the overnight interest rate in June.

The pan-European Stoxx 600 index finished 0.83% lower (up 1.69% in one month), while the Euronext 100 fell 0.57% (up 1.61% in May).

In Germany, the DAX index closed 0.68% lower at 10,263 points, to gain 2.23% for the month. Volkswagen, RWE, Deutsche Bank and Siemens weighed heavy on the index, while ThyssenKrupp, Beiersdorf and Heidelbergcement pushed up with modest gains.

In Paris, the CAC 40 ended with loss 0.53% at 4,505 points: it gained 1.73% in May. Legrand, Air Liquide, Accor and LafargeHolcim fell over 1.5% each, and ArcelorMittal, Technip and L'Oréal rose.

Across the Channel, the FTSE 100 fell 0.61% to 6,232 points, ending 0.15% down in May. Inmarsat, British Land and ITV were leading the losing side, while 3I Group, Informa and WorldPay advanced.

The Italian FTSE MIB index dropped 1.42% to close at 18,031 points, losing 3.06% for the month. Banks were hit again, while manufacture and other production companies like CNH Industrial, Snam, Atlantia and Fiat Chrysler were the only winners.

The Spain's Ibex 35 dropped 0.95% to 9,030 points. Shares of banks and companies like Telefonica were the most wanted.

The Swiss Market Index finished 0.74% lower at 8,216 points, but added 2.78% in May. Credit Suisse, Zurich Insurance and Swatch were the main decliners, and Swiss Life, UBS and Actelion the best advancers.

Oil prices were rising: Brent added 0.44% to $49.94 a barrel, and West Texas Intermediate rose 0.65% to $49.86 a barrel at ICE Europe by 5:38 p.m. CET.

The euro lost 0.07% to the U.S. dollar, and dropped 0.24% versus the Japanese yen. The currency was 0.65% stronger compared to the British pound and 0.11% compared to the Swiss franc by 5:50 p.m. CET. Gold climbed up 0.70% to $1,213.71 per troy ounce.

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Breaking the News / ZR