TELETRADER News
5/26/2016, 10:38 AM (Source: TeleTrader)
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European markets lose steam, pressured by banks

Stock markets across Europe were trading higher on Thursday, as the euro strengthened following the encouraging economic data from Germany, Switzerland, Spain. Oil prices helped the stocks rise, and European markets took up the confidence mostly seen in Asia. Banks were under pressure after Banco Popular Español plunged over 20%, and the indexes started turning red.

The pan-European Stoxx 600 dropped 0.17%, pressured by Daily Mail and General Trust's fall of almost 8% as the publishing group cut its outlook for 2016; all other major losers were banks in Spain, Italy and Germany. The Euronext 100 rose 0.06% by 10:32 a.m. CET.

In France, the CAC 40 opened fractionally lower but rose 0.04% with ArcelorMittal gaining 6.43%, while Technip climbed up 1.40%. Kering dropped 1.37%. Société Générale, Credit Agricole and BNP Paribas dropped around 1% each.

The Frankfurt's DAX index rose 0.36%. ThyssenKrupp added 2.82% and RWE was up 1.41%. Deutsche Telekom fell 2.80%, while Commerzbank and Deutsche Bank were around 1% lower.

In the City of London, the FTSE 100 was up 0.04% with mining companies enjoying biggest gains, while banks were on the losing side.

The Italian FTSE MIB dropped 0.37% suffering on weaker banking sector, while Telecom Italia rose almost 2% and other gainers were from manufacturing and industrial companies. Retail trade in Italy advances 2.2% year on year in March, according to the latest data from Istat.

The Swiss Market Index rose 0.18%. ABB and Nestlé were the best performers, while Zurich Insurance was the only loser.

The euro rose 0.16% against the U.S. dollar, added 0.22% compared to the Swiss franc, and was even versus the British pound by 10:32 a.m. CET. Gold climbed up 0.22% to $1,227.10 per troy ounce.

Oil prices were on the rising path and broke the $50 a barrel mark first time since October: Brent added 0.66% to $50.58 a barrel, while WTI rose 0.34% to $49.80 a barrel by 10:32 a.m. CET.

 

 

Image: Bolsa de Madrid – EFE / EPA / Paco Campos

Baha Breaking the News (BBN) / ZR