Sale on the global stock markets reaches Europe


04/25/2018

Stock indexes of Western Europe on Wednesday are holding trades in the "red zone" after the sale of assets in the markets of the United States and Asia due to an increase in the yield of US Treasuries and government bonds of several other developed countries.



On the eve, yield of 10-year US Treasuries exceeded 3% for the first time since 2014; it is fluctuating around this mark on Wednesday.

The consolidated index of the region’s largest enterprises of the Stoxx Europe 600 decreased by 0.8%, to 379.97 points.

The British indicator FTSE 100 dropped by 0.5%, like the French CAC 40, the Spanish IBEX 35 - by 0.7%. The German DAX fell 1.2%.

The consumer confidence index in France rose in April to 101 points from 100 points a month earlier. Analysts had expected the indicator to remain at the March level.

The growth in producer prices in Spain increased in March to 1.3% in annual terms from 1.2% in February.

The growth of industrial production in Austria slowed down to a minimum in February from 5.1% in August, after a jump of 7.3% a month earlier.

Prices of shares in mining and metallurgical companies are down following the cost of non-ferrous metals: BHP lost 1.9%, Antofagasta - 3.8% in London, Rio Tinto - 2%, Glencore - 1.8%.

After a sharp decline on Tuesday, oil went to growth, the price of Brent again exceeded $ 74 per barrel (+ 0.2%), but oil companies are still in the red. The share price of Royal Dutch Shell fell by 0.8%, Total - by 0.7%.

The market value of Statoil ASA fell by 2.2%. The company significantly increased its net profit and EBIT, but they did not reach consensus forecasts.

The price of Credit Suisse securities jumped by 5% at the auction in Zurich. Switzerland's second-largest bank increased net profit by about 16%, pre-tax profit by 57%, which is better than market expectations.

The rate of shares of the British bank Lloyds Banking Group decreased by 0.4% due to persistence of high reserves for payments within the case of imposing credit insurance services (PPI).

The capitalization of Irish pharmaceutical company Shire, whose shares are traded in London, decreased by 0.2%. On Tuesday, Shire and Japan's Takeda reached a preliminary merger agreement worth more than $ 80 billion, taking into account Shire's debt.

Price of Whitbread’s securities decreased by 2.1% after announcement of separation of Costa Coffee coffee shops chain as an independent company. In this case, Whitbread will retain the hotel brand Premier Inn. 

source: reuters.com