INGOT Brokers AU | European market report (2017-09-04)

European market report (2017-09-04)

Overview

European equities started the week in negative territories pressured by the geopolitical tensions in the Korean peninsula after North Korea proceeded with a nuclear test during the weekend. Moreover, the U.S market is closed today for Labor Day.

North Korea said it tested an advanced hydrogen bomb for a long-range missile on Sunday, prompting a warning of a “massive” military response from the United States if it or its allies were threatened.

The Stoxx Europe 600 index edged down 0.5 percent to close at 374.20, snapping a three-session winning streak.

Considered a haven at times of geopolitical tensions, gold jumped 0.8% to $1,340.50 an ounce and hit $1,343.50, around its highest since early September 2016. That supported gains for gold miners on the Stoxx 600. Shares of Polymetal International PLC advanced 3.7%, Centamin PLC rose 2.4% and Randgold Resources Ltd. RRS  picked up 2%.

Elsewhere in the currencies market, the EUR/USD has started the new trading week in green. Currently, the pair is trading at 1.1901, up 0.35% on the day. However, The pound was little changed after a reading of U.K. construction activity in August hit its lowest in a year. The GBP/USD is currently trading at $1.2930.

On the release front, Eurozone Sentix Investor Confidence climbed to 28.2, above the forecast of 27.4 points. Eurozone PPI continues to improve, coming in at 0.0%, still shy of the estimate of 0.1%. The primary focus this week will be the ECB interest rate decision on Thursday.

 

FTSE 100

U.K. stocks edged down in Monday’s trading session, falling alongside markets throughout Europe and Asia after North Korea conducted another test of its nuclear capabilities.

Top advancers within the index included Fresnillo PLC and Randgold Resources Ltd., rising 2.9% and 2%, respectively, as gold prices advanced nearly 1% and traded near a 1-year high. Among the declining shares in today’s session was Asia focused bank Standard chartered as its shares declined 1.5 percent.

DAX 30

Germany stock market started the week in the red pressured by the losses generated in the Food & Beverages, Basic Resources and Utilities sectors. The German DAX 30 declined 0.33 percent to close at 12,102.21.

The index declining shares outnumbered the advancing ones by 23 to 7.

CAC 40

France equity markets ended Monday’s session in negative territory led by losses in the Technology, Healthcare and Financials sectors. The CAC40 index fell 0.4 percent to close at 5,103.97.

The index declining shares outnumbered the advancing ones by 32 to 8.

 

 

 

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