European markets close lower, pressured by oil

Monday, 25. January 2016 18:30

European stock markets finished the day in red, concerned by another wave of falling oil prices, which adds to otherwise atoned business confidence, and uncertainty induced by the expectations of a move from the European Central Bank.

German DAX index settled lower 0.29%, at 9,736 for the day, with two banks leading in losses: Deutsche Bank AG crushed 5.52% lower, and the Commerzbank AG lost 3.60%. Among the notable losers were also three car makers: Volkswagen AG with fall of 1.95%, Daimler AG dipped 1.71%, while the BMW (Bayerische Motoren Werke AG) slipped 0.99%. There were some winners: Fresenius Medical Care KGAA shares were the most wanted, gaining 2.51%, chemical giant Henkel AG was up 1.49%, and even the host of the trade Deutsche Börse got 1.49% in the shares’ value.

In Paris, CAC 40 closed down 0.58% at 4,311. The shares of three banks were among losers: BNP Paribas lost 2.87%, Société Générale fell 2.72%, and Credit Agricole was down 2.58% The loser of the day was rail transportation giant Alstom, with the shares slashed by 9.53%, despite fresh deal for building 800 locomotives in India. Construction company Vinci SA enjoyed healthy 2.34% rise.

London’s FSTE 100 ended the day 0.39% lower at 5,877. Again, the banks were battered the most: Lloyds Banking Group PLC lost 5.56%, Barclays PLC sipped 4.67%, and Royal Bank of Scotland Group PLC was down 4.12%. It’s the retailer chain Kingfisher PLC that was smashed hardest by 5.85% after the company’s rating was decidedly degraded by Morgan Stanley and other agencies. Anglo-Swiss commodity company Glencore PLC revelled in gains of 5.90%, winning another day after last week’s climb.

Amsterdam’s AEX index was down 0.29%, Belgian BEL 20 lost 0.43% after country’s national bank gave a grim picture of the business confidence, while the Austrian ATX ended the day essentially flat. The gains were seen in Ireland’s ISEQ 20 of 1.57%, at Denmark’s OMX Copenhagen 20 of 1.01, and in Portugal the day for PSI-20 ended with a plus of 0.28% after the one-round presidential elections.

The euro gained 0.54% to the U.S. dollar by 6:28 p.m. CET. North Sea oil benchmark Brent was down 4.43% to $30.82 a barrel at 6:19 p.m. CET.

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