INGOT Brokers AU | European market report (2017-10-20)

European market report (2017-10-20)

Overview:

European equities ended today’s trading session in the mixed territory as investors were monitoring political developments in the area and as they reacted on earnings of the corporates.

The single currency fell against the greenback to trade at 1.1778, while it rose against the safe-haven assets Japanese yen and Swiss Franc to trade at 133.71 and 1.1599 respectively at 19:00 GMT.

The primary European index Stoxx 600 added 0.26 percent or 1.02 points to close Friday’s trading session in positive territory at 390.13 supported by the gains in Financials, Technology and Basic Materials sectors.

Looking at individual stocks, Volvo added 7 percent today after the firm reported higher than expected increase in its quarterly core earnings. Moreover, both Antofagasta and ArcelorMittal gained 1% each as the increase in copper prices supported mining shares.

In political news, Prime Minister Theresa May denied reports that the U.K. had increased its financial offer to the European Union as part of its steps to leave the bloc.

FTSE100:

UK’s equities were approximately flat today, where its leading benchmark FTSE100 added only 0.19 points to close at 7,523.23 supported by the gains in the sectors of Financials, Industrials and Energy.

However, FTSE100 gains were limited by the losses in most of the sectors such as Consumer Non-Cyclicals, Healthcare, and Utilities.

Looking at individual stocks under FTSE100, Miner Fresnillo was the biggest loser today as its share fell by 3.6 percent after the Credit Swiss downgraded its rank to “neutral.”

On the other hand, Standard Chartered was the biggest gainer after as its stock added 3.1 percent after the U.S. Senate passed a budget blueprint seen as a key step towards tax cuts that the market hopes will aid financials.

In the currency market, the sterling appreciated against the U.S dollar on Friday to trade at 1.3189 at 19:00 GMT.

DAX30:

German’s stocks rose slightly today were its leading benchmark DAX30 rose edged up by 0.01 percent or 1.18 points to close the session at 12,991.28 supported by the gains in Financials and basic Materials sectors. On the other hand, the losses in Consumer Non-Cyclicals, Consumer Cyclicals, and Industrials have weighed on the stocks.

Linde’s stock was the top performer under DAX30 as it gained 2.23 percent after the firm reported that it had passed an important threshold in its exchange offer for the planned $80 billion mergers with U.S. peer Praxair.

CAC40:

French stocks rose during Friday’s trading session as the Primary French benchmark rose by 0.08 percent or 4.090 points to settle up at 5,372.38 supported by the gains in Basic Materials, Financials and Industrials sectors.

The board of Telecom Italia has approved the creation of a joint venture with French media group Vivendi's  pay-tv unit Canal+, strengthening the link between the Italian phone group and its biggest shareholder.

 

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