Due to the significant drop in mining sector on the back of the decline in Copper and nickel prices, and as the performances of overseas markets were mixed, European equities fell in Wednesday’s trading session.
EUR depreciated against the greenback as it traded at 1.1880. Also, EUR dropped against the safe-haven Swiss Franc at 1.1471, while EURJPY were traded lower during the session at 131.40.
The European leading benchmark Stoxx600 edged lower by 0.02% pressured by the Basic resources sector which dropped by 1.75%. The profit-taking positions have weighed on the sector, where profit taking hit metal prices after Reuters reported that, commodity traders said an emergence of funds offloading copper overnight had failed to carry into the market.
The share of UK’s home improvement retailer Travis Perkins tumbled by 3.85% as Bernstein cut its recommendations to underperform.
Meanwhile the Italian largest broadcaster Mediaset dropped by 5% after Macquarie downgraded the firm from outperform to underperform.
UK’s equities ended today’s trading session in negative territory where FTSE100 fell by 0.28% to settle lower at 7,379.70 as the losses which generated by Basic Materials have weighed on the equities.
Booker Group and Tesco’s stocks declined on Wednesday as Exane BNP Paribas downgraded their shares to underperform; their stocks fell by 2.41% and 1.84% respectively.
Looking at specific stock in Basic Resources industry, each of the stocks of BHB Billiton, Gleronce, Antofagasta and Anglo American have fallen by 2% or more.
GBP dropped against the U.S dollar to trade at 1.3238 as the wages data came lower than expected by 0.2% at 2.1%. However, the unemployment rate fell to 4.3% but lower than the expectations of a decline of 4.4%.The main reason behind the drop in the GBP against the greenback is the uptrend in the dollar due to the optimism regarding the US tax plan.
German’s equities were up today, Dax30 added 0.23% to trade at 12,553.57 supported by the gains in Industrial and Consumer Cyclicals sectors as both added 0.98% and 0.49% respectively.
In economic news, the Germany annual consumer price index was flat in August matching the market expectations at 1.8%. Also, the yearly Harmonised index of consumer prices came in line with expectations at 1.8% while the annual wholesale price index rose by 3.2%.
Moreover, French stocks ended today’s session in the green as CAC40 was up by 0.17% to trade higher at 5,217.59, helped by the gains in Industrial and energy sectors where both gained 0.74% and 0.56% respectively.
France's Vivendi, surged towards the top of the benchmark after UBS upgraded its stock rating for the firm to "buy" from "neutral." Its shares finished up 2.78% to settle up at 21.24.
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