INGOT Brokers AU | European market report (2017-06-20)

European market report (2017-06-20)

European stock markets rebounded on Tuesday’s trading session to close lower after the decline in the oil prices which reached seven month lows pushing energy companies shares lower, also the dovish comments made by Bank of England Governor Mark Carney regarding the U.K.’s interest rates drove the markets down.

Oil prices trended down reaching their lowest levels since last November due to the recent news of possible increase in supply. Brent crude declined 2.47 percent to trade at $45.72 a barrel, while U.S crude lost 2.92 percent to trade at $42.71 a barrel.

GBP/USD reached a one week low of $1.2660 after the Bank of England’s Mark Carney said now was not the time to raise rates. The comments dashed the hopes of some investors who had been expecting the U.K.'s central bank to adopt a more hawkish tone.

In the release front, the Eurozone’s current account surplus narrowed in April according to data published by the European central bank today, additionally Germany's economic research institute Ifo has raised its forecast for GDP expansion in the country this year and the next.

 

FTSE 100

U.K. equity markets ended Tuesday’s session lower pressured by the decline in the oil sector which deteriorates because of the decline in the oil prices, also the loses in the banking sectors weighted on the index after head of the Bank of England said he’s not inclined to raise interest rates at this time. The FTSE 100 fell 0.7 percent to close at 7,472.71.

The banking sector closed today’s trading session in red with Lloyds Banking Group PLC fell 2.5%, Standard Chartered PLC flipped down 1% and HSBC PLC shed 0.5% and Royal Bank of Scotland Group PLC dropped 0.7%.

Additionally loses in Barclays shares drove the index lower, the company’s shares lost 1.9 percent after the U.K. Serious Fraud Office charged the bank and four former executives with conspiracy to commit fraud in a case related to fundraising in Qatar during the financial crisis.

DAX 30

Germany stock markets closed today’s session in red, pushed by the loses in the Retail, Technology and Basic Resources sectors, the DAX 30 fell 0.58 percent to close at 12,814.79 points.

Failing stocks outnumbered the raising ones by 24 to 5, while 5 shares remain flat.

The best performers of the session on the DAX were E.ON SE which rose 1.00% or 0.090 points to trade at 9.062 at the close. Meanwhile, Volkswagen added 0.57% or 0.75 points to end at 131.95 and Prosiebensat 1 Media was up 0.42% or 0.155 points to 37.425 in late trade.

The worst performers of the session were Thyssenkrupp which fell 1.86% or 0.450 points to trade at 23.695 at the close. Commerzbank declined 1.77% or 0.170 points to end at 9.423 and Adidas was down 1.57% or 2.75 points to 172.00.

 

CAC 40

French equities ended Tuesday’s session lower, driven by the loses in the Oil & Gas, Basic Materials and Financials sectors, the CAC 40 declined 0.32 percent at 5,293.65. Failing stocks outnumbered the raising ones by 26 to 14.

The best performers of the session on the CAC 40 were Danone SA which rose 1.44% or 0.97 points to trade at 68.54 at the close. Meanwhile, Kering SA added 1.13% or 3.45 points to end at 307.90 and Cap Gemini SA was up 0.66% or 0.61 points to 92.72 in late trade.

The worst performers of the session were ArcelorMittal SA which fell 3.07% or 0.565 points to trade at 17.835 at the close. TechnipFMC PLC declined 1.89% or 0.46 points to end at 23.93 and Total SA was down 1.32% or 0.59 points to 44.55.

 

 

 

 

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