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Asian Markets at Close Report

European Markets at Close Report

Sep 13, 2016

European Markets Closing Report, by CNBC on September 13, 2016: Europe Ends in Red as Oil Posts Sharp Declines; Fed in Focus

cnbc.com
 
Arjun Kharpal, Alexandra Gibbs, Holly Ellyatt

 
European stocks finished sharply lower on Tuesday as sentiment was weighed down by a sharp fall in the oil price, while investors speculated over when the U.S. Federal Reserve would raise interest rates.
After a choppy trading session, the pan-European STOXX 600 finished down 1 percent, having extended losses as U.S. stocks posted solid losses.

Fed in focus, yet oil causes a stir







FTSE FTSE 6676.88
-24.02 -0.36% 492052249
DAX DAX 10404.02
-27.75 -0.27% 66315817
CAC CAC 4398.45
-41.35 -0.93% 65270867
IBEX 35 IBEX 35 Idx 8749.60
-117.00 -1.32% 143954493
In recent sessions, traders have been closely following comments by Fed officials for clues on the timing of a rate hike in the U.S. As of late, Fed speakers have sounded more hawkish, prompting markets to drop sharply last week and on Monday.

However on Monday, U.S. markets bounced back to close sharply higher after a dovish speech from Fed Governor Lael Brainard; who said that while economic progress continues, it would be wise for the Fed to keep monetary policy loose.
Markets are now looking ahead to retail sales data on Thursday which will be the most important data the Fed will see before it meets on September 20. Goldman Sachs trimmed the odds of the Fed raising interest rates when it meets, noting the absence of a clear indication that the central bank's rate-setting group was set to tighten policy.

Will we get a washout for stocks in September?

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Not a Scientific Survey. Results may not total 100% due to rounding.
Another factor which seems to be capping gains in the market on Tuesday is oil. Prices were sharply lower after the International Energy Agency warned in its latest report that markets would have to wait "a while longer" for the oil market to rebalance.
Brent posted declines, hovering at $47.30, while U.S. WTI fell even further, trading at $45.05. Consequently, commodity sectors—miners and oil—sank over 2 percent each, with Anglo American and Tullow Oil near the bottom of the STOXX 600.
In Asia, markets ended mixed despite slightly better-than-expected data from China which showed fixed-asset investment growth in August holding steady at 8.1 percent on-year, August industrial output rising 6.3 percent on-year and retail sales increasing by 10.6 percent on-year.

Ocado shares tank

In individual stock news, Ocado shares tumbled over 13 percent down after it warned it was seeing sustained margin pressure which is unlikely to go in the near-term.
France's Air Liquide launched a 3.3 billion euros ($3.71 billion) capital raise to help it finance the acquisition of Airgas, sending shares in the firm up as much as 5 percent.
Shares of HSBC were lower after Citigroup downgraded its outlook on the stock. Meanwhile, Partners Group shot up 9 percent after Helvea Baader Bank raised its price target for the stock. This comes after the investment management firm reported higher interim profits.