1/18/2016, 5:57 PM (Source: TeleTrader)
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European markets: waiting for China, domestic data

National holiday in the United States, fall of oil prices, and anticipation of the Chinese GDP report have slowed trading pace and volumes across the globe.

The European markets closed mostly lower, with the Pan-European EuroStoxx 50 index closing down 0.58% at 2,935, with financial institutions suffering heaviest losses: Unicredit by 5.37%, Intesa Sanpaolo by 5.00%, Deutsche Bank AG by 3.28%, Société Générale by 2.53%, BNP Paribas by 2.31% (all at 5:50 p.m. CET). The banks feel the pressure from the ECB request to settle problems with the non-performing loans in countries such as Greece Portugal and Spain, which slowdown prospects of the Eurozone recovery, limiting the ability of banks to give new loans.

In Germany, DAX index slipped 0.23% to 9,529 at the close, keeping the trend of earlier losses. German markets were eager to see new set of numbers from Destatis on consumer prices, and the survey of economic sentiment by the Centre for European Economic Research (ZEW), expected Tuesday morning. Sports equipment maker Adidas AG was enjoying a jump of 6.45%, followed by the Infineon Tech AG’s 2.59% gains. Henkel AG shed 4.10%, while Deutsche Bank AG lost 3.05%, and Commerzbank AG with losses of 1.87%, were leading in the red part of the board.

The French CAC 40 lost 0.52%, partly due to President François Hollande’s speech describing French economy as one in “a state of emergency”. ArcelorMittal gained 2.95%, while Crédit Agricole lost 6.49% at the close.

In London FTSE 100 declined 0.42% to 5,779, with the extremes seen as Swiss-based commodity Glencore PLC was winning 1.55%, while the sports retail giant Sports Direct International PLC was losing 2.78% of its market value.

European traders and investors were keeping their eyes on oil prices, after Iran’s long expected return to the European markets, as international sanctions have been lifted following the nuclear programme deal. The Iran’s return is seen as a possible catalyst for a further decline in the prices with the volumes of the crude produced daily, but the Islamic Republic’s development of technology would be heavily dependent on revenues. European benchmark Brent recovered 3.70% to $28.84 a barrel, while the American light sweet crude WTI was up 2.25% to $29.11 a barrel by 6:20 p.m. CET.

There were some exceptions: Swedish index OMX 30 was up 0.34%, and Danish OMX 20 - up 0.20%. Incidentally, both are the EU countries, but are out of Eurozone.

Outside the EU, Swiss SMI saw lost 0.10%, with Actelion, SGS and UBS Group leading the winners’ pack, while Transocean saw huge sell-off losing 2.27%.

Breaking the News / ZR