INGOT Brokers AU | European market report (2017-09-14)

European market report (2017-09-14)

Overview:

European markets ended today’s trading session in mixed territory as investors reacted on the BOE’s interest rate decision and individual share news.

EUR was flat against the greenback at 1.1887 at 17:05 GMT, however, EUR appreciated against safe-haven assets Japanese Yen and Swiss Franc at 131.68 and 1.1486 respectively.

European primary benchmark Stoxx600 rose on Thursday’s session to close up by 0.12%, as the majority of the sectors on the index ended today’s session in the green territory.

The worst performer on the European leading benchmark was WM Morrison as its stock tumbled by 5.14% despite that the firm reported an increase of 40% in its profits for the first half of this year.

Looking at specific stocks, Investec increased the target price of the London Listed online takeaway service Just Eat; its stock added 1.98% during today’s trading session.

FTSE100:

UK’s shares ended today’s session in the red as FTSE100 declined by 1.14% to close lower at 7295.39, pressured by the losses in Basic Material sector.

Moreover, the strength in GBP pressured the shares as after the BOE decided to keep its interest rate on hold at 0.25% but announced that UK’s interest rate could be hiked faster than the expectations as the economy is overgrowing. GBP rose against the greenback at 1.3397 reaching its highest level since a year.

As copper and nickel prices remained under pressure for two days in a row, UK’s mining firms such as BHP Billiton, Anglo American, Glencore and Rio Tinto continued their losses as each of them dropped by 2% or more during Thursday’s trading session.

Looking at retail sector, Next PLC. Jumped by 13.06% as the firm increased its net profits and sales outlook. The company increased its expectations of its profits from between GBP 460 million and GBP 740 million to between GBP 687 and GBP 747 million.

DAX30:

Moreover, German’s stocks fell during today’s session where DAX30 declined by 0.10 to settle down at 12,540.45, as the losses which generated by Utilities Sector have weighed on the shares.

The stock of Deutsche Boerse AG was the worst performer on DAX30 on the back of news that Deutsche Boerse agreed to pay fines of $12.5 million, but it will wait until Germany's finance watchdog and the government of Hesse complete their investigations before deciding whether to extend Kengeter's contract, which expires in March.

CAC40:

On the other hand, French equities ended Thursday’s session in the green where CAC40 advanced by 0.15% to close up at 5,225, helped by the gains in the Energy sector.

 The Energy Sector added 0.72% supported by the announcement from International Energy Agency as it announced on Wednesday that, global demand is catching up with supply. Brent Crude oil traded at $55.80 per barrel around the European market close, while WTI rose at 50.25 per barrel in today’s trading session, reaching its highest price in five weeks.

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