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Asian Markets at Close Report

European Markets at Close Report

Sep 9, 2016

European Markets Closing Report, by CNBC, Europe Stocks Close Sharply Lower as US Stocks Fall German Exports Data

cnbc.com
 
Arjun Kharpal, Holly Ellyatt, Luke Graham
 
European stocks closed sharply lower on Friday after Wall Street stock indexes dropped and data showed Germany's exports fell in July.

The U.K.'s FTSE 100, French CAC index and German DAX closed down more than 1 percent.



 


FTSE FTSE 6773.01
-85.69 -1.25% 522475225
DAX DAX 10554.56
-120.73 -1.13% 79073700
CAC CAC 4486.45
-55.75 -1.23% 69196641
IBEX 35 IBEX 35 Idx 9016.10
-85.00 -0.93% 173822119

The pan-European STOXX 600 closed down more than 1 percent, with almost all sectors in negative territory.
U.S. shares slid as markets opened on fears of a looming interest rate hike by the Federal Reserve. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq were down around 1 percent.
Data from Germany showed exports fell 2.6 percent in July. This was the latest piece of bad news about Germany's economy, following disappointing manufacturing data earlier in the week.
Meanwhile, yields on 10-year German Bunds turned positive for the first time since June 22. Yields were around 0.004 percent, up from -0.06 percent on Thursday.
Investors have been left disappointed after the ECB kept its benchmark refinancing rate at 0 percent on Thursday and did not change its trillion-euro bond-buying plan, saying the program would run until the end of March 2017 or beyond if necessary.
Investors had expected the central bank to extend the deadline for quantitative easing, but ECB President Mario Draghi said the central bank had not discussed this at its policy-setting meeting.
"Yesterday's no-change stance, however, does not diminish the need for further easing. But there was no explicit mention of fresh measures under consideration, spurring a knee-jerk negative reaction in the markets," Radhika Rao, an economist at DBS Bank, said in a note on Friday.

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Italian banks seesaw

Italian banks were in focus for investors following heavy news flow from the sector. Banca Monte dei Paschi di Siena's chief executive, Fabrizio Viola, stepped down on Thursday as the bank seeks an emergency rescue plan. The troubled Italian lender said it would find a replacement quickly. BMPS shares closed lower by just under 1 percent.
The Bank of Italy has given the green light to the merger between Banco Popolare and Banca Popolare di Milano, but shares in both lenders ended the session in the red.
Unicredit shares were in negative territory after the bank said on Thursday it had sold its a portfolio of bad loans worth 570 million euros ($640 million) to Balbec Asset Management. Shares in the bank finished down around 1.2 percent.
In Germany, Commerzbank is mulling plans to split up its business for lending to small and medium-sized firms and reduce the size of its investment bank, according to Handelsblatt newspaper. Shares of Commerzbank traded mildly higher.

JD Wetherspoon shares rise

Elsewhere, British pub chain JD Wetherspoon reported a 5.4 percent year-on-year rise in revenue for its fiscal year, with profit before tax up 3.6 percent. Shares of the firm traded higher. Rival Greene King however, closed in negative territory, after it warned on tougher trading conditions after Brexit.
Pharma giant Novo Nordisk closed in the red after JP Morgan cut its price target for the stock.

Oil, North Korea in focus