INGOT Brokers AU | European market report (2017-08-22)

European market report (2017-08-22)

Equities across Europe settled higher in the green with very few losers during today’s bullish up-trending trading session to witness their first gain after three consecutive declines.

These gains were boosted by the positive opening on Wall Street, the expectations that the tension between the US and North Korea will fade soon and large gains from the Mining sectors.

Mining sectors gained as metals rose to trade at their fresh highs, with Copper trading at its highest since late 2014 and Gold at its highest since November 2016.

The UK public sector net borrowing in July turned into surplus for the first time in 15 years on higher receipts of income tax, the Office for National Statistics said Tuesday.

Meanwhile, Germany's economic confidence weakened for the third straight month to hit a 10-month low in August, reflecting weak exports and scandals in the auto sector.

UK’s subprime lender Provident Financial plunged by 66.22 percent as the door-to-door lender issued a profit warning on Tuesday and put shareholders’ payout on hold, taking their dividend yield from almost 8 percent to zero.

The UK-based “inclusive” lender has ousted its chief executive, Peter Crook, because he made a poor fist of changing the teams that sell and collect loans on the doorstep, from using self-employed workers to in-house “customer experience managers”. At present, that switch has created the worst of two worlds. Existing agents are not collecting or selling properly, while new staff have not yet got the hang of coaxing and cajoling clients.

As a result, the consumer credit division is now expected to report a loss of up to 120 million pounds for the year rather than a pre-tax profit of 60 million pounds. That could reduce earnings for the year to just 80 million pounds from an estimated 216 million pounds.

 

FTSE 100

Equities in the FTSE 100 rose during today’s up-trending session boosted by gains across all the sectors especially the Basic Materials sector, FTSE 100 settled higher at 7,381.74 gaining 0.86 percent.

The session’s gainers considerably outnumbered the losers exceeding an 8 to 1 ratio, with 89 gainers and 11 losers and a single flat share.

The best performers of the session on the FTSE 100 were, Tesco PLC rising by 4.1 percent, Shire PLC gaining 112 points and Rio Tinto PLC settling higher at 3,539.18.

Meanwhile, the worst performers of the session on the FTSE 100 were, Provident Financial PLC that plunging by 66.22 percent, Admiral Group PLC losing 22 points and ITV PLC ending lower at 166.14.

 

DAX 30

Equities in the German benchmark ended the session higher following the large gains across all sectors and the few losers, with Healthcare and Basic Materials sectors leading these gainers, DAX 30 rose by 1.35 percent to end higher at 12,229.34 slightly below the session's high.

The session’s gainers outnumbered the losers by 14 to 1, with 28 gainers, two losers and zero flat shares.

The best performers of the session on the DAX 30 were, Fresenius SE & Co KGaA rising by 3.1 percent, Linde AG adding 4.15 points and Bayer AG settling higher at 108.9.

Meanwhile, the worst performers of the session on the DAX 30 were, Commerzbank AG shading 0.19 percent, Deutsche Bank AG losing 0.02 percent and Vonovia SE ending slightly higher at 34.40.

 

CAC 40

CAC 40 ended the session in the green to settle higher at 5,131.86 adding 0.87 percent supported by the gains in the Energy, Technology and Basic Materials as well as the very few losers.

At the session's end, there were 38 gainers and only two losers with zero flat shares on the CAC 40.

The best performers of the session on the CAC 40 were, Capgemini SE gaining 2.44 percent, Vivendi SA adding 0.35 points and Compagnie Generale des Etablissements Michelin SCA closing higher at 115.80.

Meanwhile, the worst performers of the session on the CAC 40 were, Societe Generale SA dropping by 0.36, Pernod Ricard SA shading 0.4 points and Atos SE settling slightly higher at 127.6.

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