Equities slide at European markets

Friday, 28. October 2016 10:01

Stock indexes in Europe were on the way to book significant weekly losses, with bearish sentiment in early trade on Friday. Incoming solid macroeconomic data were boosting chances for an increase in interest rates in the United States and weakening the case for more monetary easing on the other side of the Atlantic. Bond yields were on a wide rebound and corporate earnings in Europe dented confidence at trading circles. However, the euro and the pound edged 0.2% and 0.14% higher, respectively, against the dollar at 9:58 a.m. CET.

The DAX moved 0.66% to negative territory and all but two constituents were in decline at 9:43 a.m. CET. The FTSE 100 fell 0.38%, where oil companies BP and Shell were in the group with the biggest losses, down more than 1.2%, together with HSBC. On the other side of the chart, Royal Bank of Scotland climbed 1.6%, almost topping the list, as it posted a jump in adjusted pre-tax profit, even though it suffered an earnings loss and warned divestment and other deadlines will be missed.

The CAC 40 was 0.1% lower. Nokia weighed the most with 1.82% in the red, followed by LafargeHolcim and Société Générale. Sanofi was the top performer, adding 5.3%. Statistics today delivered a report on meager economic expansion in France in the past quarter, with household consumption dipping 0.5% in the period, starting in July. Preliminary data indicated consumer prices will come in flat in October, or 0.5% higher on the year on a harmonized basis, unchanged from September.

Image: EPA / Rafal Guz

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