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Asian Markets at Close Report

European Markets at Close Report

Sep 8, 2016

European Markets Closing Report, by CNBC on September 9, 2016:: Europe Close Lower as Draghi Disapoints

www.cnbc.com


European stocks closed lower on Thursday after the European Central Bank (ECB) kept interest rates on hold and did not extend its asset purchase program.

Apple weighs down U.S. markets

 

U.S. markets also traded lower in midday trading following Draghi's comments.

The Nasdaq fell furthest, down 0.3 percent. The S&P 500 and Dow Jones Industrial Average were down around 0.1 and 0.2 percent respectively.
Meanwhile, Apple shares plunged the day after the tech giant launched the iPhone 7, wireless headphones and a new watch on Wednesday in a bid to turn around the company's first drop in sales. Shares of the firm were down around 2 percent in early morning trading,
The technology sector in Europe also fell, with European suppliers to Apple hit. Austria Microsystems and Dialog Semiconductor - both suppliers to Apple - were in the red.
ASML, meanwhile, saw shares slide after Samsung Electronics said it was selling about 6.3 million shares in the company.

Draghi disappoints

Symbol
Name
Price
 
Change
%Change
Volume
FTSE FTSE 6864.24
 
17.66 0.26% 525212680
DAX DAX 10680.72
 
-72.26 -0.67% 75183049
CAC CAC 4544.07
 
-13.59 -0.30% 75338343
IBEX 35 IBEX 35 Idx 9105.40
 
90.10 1.00% 191242888

The pan-European STOXX 600 was down 0.7 percent at 3.00 p.m. London time, with the German DAX paring losses to finish down 0.7 percent. Earlier in the day, it had sunk to around 1.5 percent.
The ECB kept its benchmark refinancing rate at 0 percent and also did not change its trillion-euro bond-buying plan, saying the program will run until the end of March 2017 or beyond if necessary.

Investors had expected the central bank to extend quantitative easing. In a media conference, ECB President Mario Draghi said the central bank did not discuss an extension of its asset purchase plan.
"Our program is effective and we should focus on its implementation," he said on Thursday.

Meanwhile, the U.K.'s FTSE 100 index finished up nearly 0.3 percent, buoyed up by news that Micro Focus will merge with Hewlett Packard Enterprise spun-off non-core software assets . Shares of Micro Focus were up nearly 16 percent.
"The initial positive reaction across every sector of the FTSE 100 to the Micro Focus deal was because it's a good sign for the continued growth of UK business and technology post-Brexit. British firms still have the confidence to buy overseas assets despite the drop in Sterling," said Jasper Lawler, market analyst at CMC Markets.


In other news

Dixons Carphone was near the top of the STOXX 600 after it reported a 4 percent rise in like-for-like sales in the 13 weeks ended July 30.
Pearson shares were in negative territory after its U.S. peer, John Wiley & Sons, reported a fall in earnings and revenue in its fiscal first quarter.
Elsewhere, Air France-KLM shares were higher after it said August traffic rose 1.9 percent.