Europe Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder http://www.brecorder.com/markets/equity/europe.html Tue, 06 Dec 2016 02:50:13 +0000 Joomla! 1.5 - Open Source Content Management en-gb European markets rise despite Italian political drama http://www.brecorder.com/markets/equity/europe/330713-european-markets-rise-despite-italian-political-drama-.html http://www.brecorder.com/markets/equity/europe/330713-european-markets-rise-despite-italian-political-drama-.html

LONDON: European stocks and the euro rebounded sharply Monday as investors were reassured by the speed of Italian Prime Minister Matteo Renzi's resignation after losing a crunch referendum.

The region's markets began the day in negative territory, with Milan tumbling two percent, but recovered somewhat with sentiment soothed also by the defeat of the far right in Austria's presidential election.

"The Italian referendum is the major story that will dominate market moves throughout Monday... after Renzi left his position after a bruising defeat," said GKFX analyst James Hughes.

"The initial market reaction was to the downside, but Renzi's decision to leave so quickly after the result meant that added clarity drove the euro and European equity markets to the upside."

Renzi stood by his promise to resign after his attempt to change the constitution was overwhelmingly rejected in Sunday's poll, leading to fears about the future of one of the eurozone's biggest economies.

The referendum verdict sent the European single currency crashing to $1.0506 -- the lowest level since mid-March 2015 -- before bouncing back over $1.07.

Equities also staged a recovery. Frankfurt jumped 1.6 percent on the day, Paris gained 1.0 percent and London added 0.2 percent, reversing initial losses.

Milan stocks closed down 0.2 percent, with banking shares slumping from 3 to 8 percent.

"European markets have been surprisingly resilient... as initial fears of another eurozone crisis have been largely brushed aside," said IG analyst Joshua Mahony.

"Sharp depreciation in the euro and European indices have been swiftly reversed, bearing more than a passing resemblance to the UK referendum and US election results."

 

- 'Judgement call' -

 

Populists in Italy and throughout Europe rejoiced at Renzi's downfall, in the wake of anti-establishment poll shocks in both Britain and the United States.

"This referendum was seen more as a judgement call on Renzi's premiership than the reforms on offer; by rejecting the PM, Italy has displayed the same kind of anti-establishment populist sentiment that has defined 2016 for the UK and US," said Spreadex analyst Connor Campbell.

He also cautioned it presented another blow to Italy's fragile banking sector.

Last month Donald Trump won the US presidential election, while Britain voted in June to leave the European Union.

Investors were comforted somewhat after Austria's anti-immigration and euro-sceptic Norbert Hofer was defeated in his bid to become the EU's first far-right president over the weekend.

Greens-backed independent candidate Alexander Van der Bellen swept to victory on Sunday.

"The defeat of the far-right Norbert Hofer by Alexander Van der Bellen in Austria provided a chink of light for the euro, preventing its more excessive losses from sticking around for too long," noted Campbell.

 

- Italian bond yield climbs -

 

 

Italy's referendum result also sent the yield on Italy's 10-year government bonds jumping to as high as 2.062 percent -- the highest since Thursday -- from 1.902 percent Friday.

Analysts remain concerned that political instability could scupper Italy's efforts to resolve a bad loans crisis in the banking sector and spark fresh eurozone turmoil.

"Italian risk has undoubtedly increased with the banks no longer the only major threat," said Craig Erlam at currency trading group Oanda.

"Italy now poses a great threat to the European project and with elections now likely to take place next year, alongside those in the other two largest economies in the eurozone, there's likely to be a lot more talk once again of a break-up with 'Itexit' this time possibly being the straw that breaks the camel's back."

US stocks higher early Monday thanks to gains by petroleum-linked equities, with investors shrugging off the Italian referendum adding risk to eurozone politics.

 



Copyright AFP (Agence France-Presse), 2016
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fawad@br-mail.com (Fawad Maqsood) Europe Mon, 05 Dec 2016 19:05:08 +0000
Euro jumps as investors bet on Italian political limbo, not turmoil http://www.brecorder.com/markets/equity/europe/330675-euro-jumps-as-investors-bet-on-italian-political-limbo-not-turmoil-.html http://www.brecorder.com/markets/equity/europe/330675-euro-jumps-as-investors-bet-on-italian-political-limbo-not-turmoil-.html

LONDON: European stocks and the euro rose on Monday, battling back as investors bet that Prime Minister Matteo Renzi's resignation after voters rejected his constitutional reforms would not trigger a snap election in Italy.  

Italian stocks broadly languished below the water line but the losses seen as the scale of Renzi's defeat in Sunday's referendum emerged were more than halved.  

But there was no relief for Italian bonds or banks, which bore the brunt of investor fears that a fresh bout of political turmoil in the euro zone's third-largest economy, and one of its most indebted, could undermine Italy's shaky banking system. 

US futures took their cue from the generally positive tone across the rest of Europe and pointed to a rise of about 0.4 percent at the open on Wall Street.  

"Renzi's resignation is likely to lead to a period of higher political uncertainty which comes in the midst of ongoing recapitalisation efforts in the Italian banking sector," said Nicola Mai, head of European sovereign credit research at PIMCO.  

"Negative market sentiment on the vote is likely to be mitigated by the fact that the market has been expecting a 'No' (vote) and that the ECB remains in play in European sovereign bond markets."  

The euro hit a 20-month low of $1.0508 but roared back two full cents, to above $1.07 for the first time in more than two weeks.  Milan's main bourse fell 2 percent at the opening but was last down 0.6 percent.

Italian financials shed more than 3 percent as a 5 billion euro rescue plan for Monte dei Paschi di Siena hung by a thread.  

Europe's FTSEuroFirst index of leading 300 shares rose 0.8 percent and Germany's DAX rose 1.5 percent.  

The referendum outcome was anticipated but the crushing margin of Renzi's defeat - 59 percent to 41 percent - caused the initial alarm.  It also deals a blow to the European Union, which is already reeling from multiple crises and rising anti-establishment sentiment of the kind that led to Britain's shock vote to quit the bloc in June.  Italy's benchmark 10-year bond yield jumped 13 basis points to 2.03 percent, widening the premium investors demand for holding Italian bonds over safer German bonds to 175 bps, before easing slightly.  The strong link between Italy's banking sector and bond market is a major concern for investors.

Banks have been hit by concerns over their huge exposure to bad loans built up during years of economic downturn. They also hold large amounts of Italian government debt.  

BREXIT IN THE DOCK  

Markets had earlier taken some encouragement from the sound defeat in Austria's presidential election of a far-right candidate by a pro-European, which confounding forecasts of a tight race.  The European Central Bank meets on Thursday amid much speculation it will announce a six-month extension of its asset buying programme and widen the type of bonds it can purchase.  

Earlier in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.4 percent and Japan's Nikkei closed down 0.8 percent.  China's CSI 300 index tumbled 1.7 percent and Hong Kong's Hang Seng index retreated 0.7 percent after US President-elect Donald Trump took to Twitter to complain about Chinese economic and military policy.  

Wall Street ended Friday on a cautious note, with the Dow off 0.11 percent, while the S&P 500 rose 0.04 percent and the Nasdaq gained 0.09 percent.  

While the US November payroll report on Friday was firm enough to cement expectations of a US interest rate hike by the Federal Reserve this month, a surprise pullback in wages helped bonds pare a little of their recent losses.  

In currencies, the dollar was supported by expectations of a US rate increase this month and more to come next year. The dollar index,, which tracks the greenback against a basket of six global peers, was up 0.2 percent at 100.95.  Against the yen, the dollar rose 0.7 percent to 114.30 yen.  

The New Zealand dollar NZD, which earlier weakened almost 1 percent to $0.707 after Prime Minister John Key unexpectedly announced his resignation, recovered a little to trade down 0.5 percent at $0.7090.  

New Zealand stocks ended the day 0.7 percent lower.  

Sterling could be vulnerable to developments in Britain's Supreme Court on Monday, as judges hear the government's appeal against a ruling that the formal process of Brexit cannot begin without parliamentary approval.  

The pound was last unchanged at $1.2715, having risen to a multi-month high on Thursday on indications from a leading government minister that a "soft Brexit" might be the outcome rather than a "hard Brexit".  

"If the government loses its appeal, we could see another leg higher in sterling against the dollar," City Index research director Kathleen Brooks said.  In commodity markets, Brent crude's rally in the wake of last week's historic OPEC production cut continued. It rose above $55 a barrel for the first time since July last year.  

 


 

 


 

Copyright Reuters, 2016
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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Mon, 05 Dec 2016 15:21:57 +0000
European stocks slip at open; Milan slumps 2pc http://www.brecorder.com/markets/equity/europe/330638-european-stocks-slip-at-open-milan-slumps-2pc-.html http://www.brecorder.com/markets/equity/europe/330638-european-stocks-slip-at-open-milan-slumps-2pc-.html LONDON: Europe's stock markets slid in opening deals on Monday as Italian Prime Minister Matteo Renzi resigned after losing a key referendum, sparking fresh eurozone fears.

Investors were however comforted after independent candidate Alexander Van der Bellen beat far-right rival Norbert Hofer in Austria's presidential election.

Milan's benchmark FTSE MIB index dived more than two percent in initial deals before pulling back to 16,970 points, down 0.7 percent from Friday's close.

Elsewhere, Frankfurt's DAX 30 dropped 0.2 percent to 10,494.64 points and in Paris the CAC 40 shed 0.5 percent to 4,506.66.

Outside of the eurozone, London's FTSE 100 lost nearly 0.4 percent to 6,704.88.

Copyright AFP (Agence France-Presse), 2016


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imad_kueconomist@yahoo.com (Imaduddin) Europe Mon, 05 Dec 2016 09:57:01 +0000
Oil prices jump as European stocks stumble http://www.brecorder.com/markets/equity/europe/330440-oil-prices-jump-as-european-stocks-stumble-.html http://www.brecorder.com/markets/equity/europe/330440-oil-prices-jump-as-european-stocks-stumble-.html

LONDON: Oil prices rose Thursday, building on a surge triggered by OPEC's output decision, while European stock markets retreated as attention switched to US jobs data and Italy's weekend referendum.

World crude prices gained four percent on Thursday, after having soared almost 10 percent on Wednesday after OPEC hammered out a deal to cut oil output for the first time in eight years.

"Oil adding to Wednesday's large gains tells you the market got what it wanted," said market analyst Jasper Lawler at CMC Markets.

Joshua Mahony, market analyst at IG trading group, said that "whilst yesterday's announcement was over and above expectations, there still remain a number of hurdles to curing the oversupply evident in the oil market".

"European markets also have Italian clouds looming, with the referendum providing the most significant risk event ahead despite tomorrow's US jobs data," he added.

London's benchmark FTSE 100 index ended the day down 0.5 percent, while the DAX 30 in Frankfurt fell 1.0 percent and the CAC 40 in Paris shed 0.4 percent.

The OPEC exporters' group, meeting in Vienna, said its 14 members had agreed on specific targets that will reduce production by 1.2 million barrels a day from next month, while key non-member Russia also committed to a reduction.

The agreement ended weeks of uncertainty and volatility on crude markets as the key players bickered over who would shoulder the biggest burden of the cuts. It also lit a fire under energy companies' share prices.

"The words 'OPEC' and 'exceed expectations' have rarely, if ever, been used in the same sentence. However yesterday's production deal seems to have done just that," Oanda senior market analyst Jeffrey Halley wrote in a note to clients.

"Cuts have been shared across all members, including the recalcitrant Iran and Iraq."

Asian stock markets, playing catch up with Wednesday's reaction on European and US indices, closed higher Thursday.

Adding to the buying sentiment was a better-than expected reading on Chinese factory output that provided fresh hope the world's number two economy was stabilising after years of slowing growth.

In foreign exchange, the dollar rallied to its highest mark since February and close to 115 yen, before easing.

Gold suffered a sell-off, falling to a near 10-month low at $1,162.11 an ounce, as investors walked away from safe-haven assets that are popular in times of uncertainty.

Strong gains by petroleum-linked equities helped lift the Dow in late morning trading on Thursday, although new claims for jobless benefits rose by more than expected to 268,000 last week.

Focus now turns to the release Friday of US jobs data. With dealers certain the Federal Reserve will hike interest rates this month, the figures could provide some insight into its plans for future increases over the next year.

And on Sunday, Italy votes on constitutional reform.

Tensions between Italian Prime Minister Matteo Renzi and the European Union have reached a boiling point ahead of the poll and he has suggested he would step down if voters reject the proposal.

There are fears his resignation could spark elections in which populist anti-euro parties could do well, and possibly even lead to the country leaving the EU. The unease hit European banking shares earlier in the week.

 

 

         London - FTSE 100: DOWN 0.5 percent at 6,752.93 points (close)

         Frankfurt - DAX 30: DOWN 1.0 percent at 10,534.05 (close)

         Paris - CAC 40: DOWN 0.4 percent at 4,560.61 (close)

         EURO STOXX 50: DOWN 0.9 percent at 3,025.00

         New York - Dow: UP 0.3 percent at 19,184.87

         Tokyo - Nikkei 225: UP 1.1 percent at 18,513.12 (close)

         Hong Kong - Hang Seng: UP 0.4 percent at 22,878.23 (close)

         Shanghai - Composite: UP 0.7 percent at 3,274.07 (close)

         Euro/dollar: UP at $1.0630 from $1.0590 Wednesday

         Dollar/yen: DOWN at 114.38 yen from 114.49 yen

         Pound/dollar: UP at $1.2574 from $1.2507

         Oil - Brent North Sea: UP $2.29 at $54.13 per barrel

         Oil - West Texas Intermediate: UP $2.03 at $51.47 per barrel

 

 


 


 

Copyright AFP (Agence France-Presse), 2016
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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Thu, 01 Dec 2016 17:47:04 +0000
Markets win boost on hopes of OPEC oil cut http://www.brecorder.com/markets/equity/europe/330342-markets-win-boost-on-hopes-of-opec-oil-cut-.html http://www.brecorder.com/markets/equity/europe/330342-markets-win-boost-on-hopes-of-opec-oil-cut-.html

LONDON: Oil prices rallied more than six percent Wednesday, pushing European and US stocks higher as traders seized on hopes that OPEC could later decide to cut crude output.

Saudi Arabia's influential oil minister Khaled al-Falih sounded an upbeat note that the Organization of the Petroleum Exporting Countries -- which pumps about a third of global oil -- would announce a deal to cut production.

The comments boosted the global oil market, long awash with crude, as ministers from the 14-nation cartel met in Vienna.

That in turn boosted the share prices of Europe's energy sector -- higher oil prices tend to translate into rising revenues and profits.

In mid afternoon trading, Paris and London stock markets rose around one percent in value compared with Tuesday's close.

British energy majors BP and Shell soared by around four percent, while French peer Total gained 2.4 percent.

"The FTSE is... in rude health, as the rising chance of an OPEC output cut has driven energy firms into the green," said analyst Joshua Mahony at traders IG.

"Despite starting the day on a gloomy tone, with RBS failing the Bank of England stress tests, it seems that markets are willing to focus on the positives, with rumours of a crude cut that could surpass expectations."

London had been hampered in earlier deals after the BoE had revealed that the Royal Bank of Scotland had failed sector-wide stress tests.

Asian equities had struggled Wednesday with investors growing uneasy over the chances of an output-cutting OPEC deal.

 

- Volatility on trading floors -

 

Uncertainty over the deal -- with Iran and Iraq initially calling to be excluded and Russia looking only to freeze, rather than cut -- fuelled volatility on oil trading floors in the past week and on Tuesday both main oil contracts had plunged four percent.

"Failure to come up with a viable solution will see oil much lower tomorrow," warned Oanda analyst Jeffrey Halley.

"The convoluted nature of the negotiations means compliance going forward will be an issue as well."

Worries about oil have weighed on global equities, which have enjoyed a strong few weeks since Donald Trump's shock US election win, on hopes his policies will ramp up economic growth.

Wall Street opened higher, driven by oil-linked stocks on OPEC hopes, as well as fresh signs that the incoming Trump administration plans to aggressively pursue tax reform.

The Republican's nominee for Treasury Secretary, former Goldman Sachs banker Steven Mnuchin, said in television interviews he plans to prioritise tax reform and easing of banking regulations to encourage more lending.

Traders are also eyeing the release of US jobs data this week and a slew of manufacturing indicators that could provide a better picture of the state of the world's top economies.

Also on the horizon is Sunday's referendum in Italy on constitutional reform. Prime Minister Matteo Renzi has suggested he will step down if voters reject the proposal.

There are fears his resignation could spark elections in which populist anti-euro parties could do well, and possibly even lead to the country leaving the EU.

 


 

 

 

Copyright AFP (Agence France-Presse), 2016

 

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Wed, 30 Nov 2016 15:53:04 +0000
European shares fall, banks knocked by Italy jitters http://www.brecorder.com/markets/equity/europe/330224-european-shares-fall-banks-knocked-by-italy-jitters.html http://www.brecorder.com/markets/equity/europe/330224-european-shares-fall-banks-knocked-by-italy-jitters.html imageMILAN/LONDON: European shares fell on Monday, weighed down by a drop in banks which were led lower by Italian lenders which hit their lowest point since end-September on continued worries over a cash call at troubled lender Monte dei Paschi.

The pan-European STOXX Europe 600 index was down 0.8 percent at 339.83 by the close. The regional bank index closed down 1.8 percent, the biggest sectoral faller.

Italian banks fell 3.9 percent, hitting an 8-week low, on continued doubts over Monte dei Paschi's ability to execute a 5 billion euros capital cash call. Investors fear that a failure of the capital raising could heighten worries over the whole Italian banking system, adding to pessimism over political stability ahead of Sunday's referendum on constitutional reform.

"Uncertainty (on Monte Paschi) remains very high," said JCI Capital portfolio manager Alessandro Balsotti, who said that sentiment could brighten if the bank finds an anchor investor.

The main Italian stock index dropped 1.8 percent, the stand-out underperformer among major European indexes.

Monte dei Paschi was suspended for excessive volatility after a drop of more than 12 percent, and ended down 13.8 percent, while the country's strongest bank Intesa Sanpaolo lost 3.2 percent.

Banks, which had benefited from a rally in US treasury yields following Donald Trump's victory in the race for the White House, were broadly lower as US treasury yields pulled back from a 16 month highs.

The oil & gas index also dropped as major oil producers convened in Vienna for an OPEC meeting later in the week.

Shares in oil majors Total, Royal Dutch Shell and Eni fell in early trade, reacting to steep losses in oil prices late on Friday and on Monday morning.

However, the sector ended off of lows, down 0.6 percent, after Brent crude turned sharply higher when Iraq's oil minister said the country was looking to co-operate on a deal to cut output.

Financial services firms also suffered in the risk-off mood. Aberdeen Asset Management ended lower despite better-than-expected results.

It had risen over 5 percent in early deals, but ended 4 percent lower as traders cited a cautious outlook for the British asset manager which continues to suffer outflows. Man Group also fell, down 4.6 percent, after the stock was downgraded by Exane BNP Paribas to neutral, though London-listed lender CYBG rose 3 percent, helped by an upgrade to "buy" from Goldman Sachs.

Utilities, which had suffered from risings global bond yields becasuse that makes their dividends relatively less attractive, outperformed.

The sector index was up 0.4 percent, with Endesa underpinned by a price target upgrade at Credit Suisse.

Copyright Reuters, 2016

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fawad@br-mail.com (Fawad Maqsood) Europe Mon, 28 Nov 2016 19:49:02 +0000
Britain's FTSE index slips as Trump rally falters http://www.brecorder.com/markets/equity/europe/330219-britains-ftse-index-slips-as-trump-rally-falters.html http://www.brecorder.com/markets/equity/europe/330219-britains-ftse-index-slips-as-trump-rally-falters.html imageLONDON: Britain's top share index slipped on Monday as a rally sparked by Donald Trump's election as US president appeared to falter with financial and energy shares showing the biggest declines, though gold miners and utilities rose. The blue-chip FTSE 100 index closed down 0.6 percent.

The benchmark index is still up about 8 percent so far this year even after falling around 5 percent since its October peak.

The UK banking index fell 1.3 percent, dragged down by worries over the impact on Italian banks from a referendum vote on constitutional reforms on Dec. 4 that could topple Matteo Renzi's reformist government.

Lloyds Banking Group, Barclays and Royal Bank of Scotland fell by 1.5 to 2.6 percent, as Italian banks sank to an 8-week low.

Shares in energy companies also fell despite crude prices rising more than 2 percent in volatile trading.

Brent crude swung from loss to gain as the market wrestled with the shaky prospect of major producers being able to agree output cuts at a meeting on Wednesday.

Shares in BP, Royal Dutch Shell and Tullow Oil 1.4 to 2.3 percent, with the wider UK oil and gas index down 1.2 percent.

Among mid-caps, shares in Man Group fell 4.6 percent after Exane downgraded its rating on the world's biggest listed hedge fund to "neutral", and rival Aberdeen Asset Management also fell almost 4 percent after profits fell and outflows continued.

Consumer-facing businesses slipped, with traders citing early indications that retail sales during last week's Black Friday promotion had disappointed and consumer spending could weaken into next year.

Retailers Next and Marks & Spencer fell 2.6 and 1.6 percent respectively, while broadband and pay TV providers BT and Sky fell 2.4 and 2.3 percent.

"The outlook for the UK continues to remain fragile and domestic-focused high street retail names will see pressure on margin and growth," said Atif Latif, director at Guardian Stockbrokers, said.

The move in the blue chip FTSE 100 index echoed falls in Europe and on Wall Street.

US stocks pulled back from last week's record highs, suggesting three weeks of rapid gains on Donald Trump's infrastructure spending plans may be over.

The uncertainty surrounding stocks and oil prices lifted utilities, seen as relatively safe due to their steady income and regular dividends, said Michael Hewson, analyst at CMC Markets.

Centrica closed up 2.6 percent, SSE up 2.1 percent, and United Utilities gained 1.5 percent.

Gold miners also benefited from a more than 1 percent rise in gold prices, which recovered from 9-1/2 month lows as the dollar extended losses after touching a near 14-year high last week. Shares in Randgold Resources, Polymetal and Fresnillo rose between 3.2 percent and 4.3 percent.

Copyright Reuters, 2016

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fawad@br-mail.com (Fawad Maqsood) Europe Mon, 28 Nov 2016 19:43:12 +0000
European stocks catch Italian cold http://www.brecorder.com/markets/equity/europe/330201-european-stocks-catch-italian-cold.html http://www.brecorder.com/markets/equity/europe/330201-european-stocks-catch-italian-cold.html imageLONDON: Shares in Italian banks slumped Monday on jitters over the outcome of a crucial weekend referendum, dragging down markets across Europe, while the outlook on an OPEC production deal fluctuated along with oil prices.

In afternoon trading, shares in Italian lenders Unicredit and Banco Popolare were down around 3 percent compared with Friday's closing levels.

The poor sentiment extended to the rest of Europe, with Royal Bank of Scotland and Societe Generale falling 1.4 percent, while Deutsche Bank shed 0.7 percent.

Tensions between Italian Prime Minister Matteo Renzi and the EU have reached a boiling point ahead of Sunday's referendum on constitutional reform.

"It's a key moment for Italy's banks," noted Neil Wilson, senior market analyst at ETX Capital.

"Sunday's referendum on constitutional reform is Italy's Brexit moment and a No vote would send tremendous shockwaves through the markets and the banking system."

"It could also heap pressure on the euro. Already crushed post-Trump, the euro could hit parity with the dollar if Renzi loses as Italy's place in the eurozone could be doubt," Wilson predicted.

Italy did not bail out its banks during the eurozone crisis, but has sought to recapitalise them via the markets. Two of its top three markets need to raise capital in the coming months.

The Financial Times reported Monday that up to 8 Italian banks could fail if market turmoil following a rejection of the referendum frustrates efforts to raise capital.

Copyright AFP (Agence France-Presse), 2016

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parvezjabri@yahoo.com (Parvez Jabri) Europe Mon, 28 Nov 2016 17:57:04 +0000
Energy and banking stocks drop, government bond yields retreat http://www.brecorder.com/markets/equity/europe/330187-energy-and-banking-stocks-drop-government-bond-yields-retreat.html http://www.brecorder.com/markets/equity/europe/330187-energy-and-banking-stocks-drop-government-bond-yields-retreat.html imageBUDAPEST: Central European equities mostly eased on Monday as a drop in crude oil prices hit energy shares while worries over Italian banks ahead of the country's looming referendum hurt the financial sector.

Italian Prime Minister Matteo Renzi, who wants to bail out troubled banks, could resign if voters reject a constitutional amendment at Sunday's referendum.

Oil prices fell on expectations that OPEC oil producers will not agree on output cuts at this week's meeting to consider implementation of proposals made in September.

Prague's main stock index was down 0.4 percent by 1518 GMT, with Erste Bank shares falling by 1.8 percent.

Warsaw's blue-chip index fell by 1 percent, with shares in PKN Orlen, Poland's leading oil refiner, shedding 0.8 percent.

Polish state-run utilities gave up ground after Friday's surge after Energy Minister Krzysztof Tchorzewski said that the companies would not be expected to invest more money to support the country's troubled coal sector.

Electricity producer PGE shed 3.6 percent, leading the fall of Polish stocks.

In other markets, the region's main currencies eased as the dollar rallied against the euro.

The forint touched a three-month low at 311.30 against the euro, but stayed close to the 310 mark around which it has hovered for months.

Regional government bond yields, boosted by US interest rate expectations after Donald Trump's election vistory, retreated on Monday, tracking euro zone and US peers.

Poland's 10-year yield dropped 5 basis points to 3.5 percent while the corresponding Hungarian yield fell 4 basis points from Friday's fixing to 3.41 percent.

"The Italian referendum is a risk, (but) the decline in oil prices can reduce inflation," one Budapest-based fixed-income trader said. "The government bond market has weakened so much (in the past weeks) that some consolidation was timely," he added.

Romania's 10-year yield was flat, with the bid/ask mid-point at 3.43 percent.

"However, with risks of fiscal slippages in 2017, we believe Moody's will likely refrain from upgrading Romania on Friday, after changing the outlook to positive almost a year ago," ING analysts said in a note, adding that the leu could tread water before the Italian vote and the US Federal Reserve's December meeting.

Raiffeisen analysts said that robust demand at Hungary's government bond auction last week underpinned their view that Hungarian bonds offer better value than Polish and Romanian counterparts.

Copyright Reuters, 2016

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Mon, 28 Nov 2016 16:19:48 +0000
European shares dragged lower by oil stocks, Italian banks http://www.brecorder.com/markets/equity/europe/330118-european-shares-dragged-lower-by-oil-stocks-italian-banks.html http://www.brecorder.com/markets/equity/europe/330118-european-shares-dragged-lower-by-oil-stocks-italian-banks.html imageMILAN: European shares fell on Monday, weighed down by a drop in crude oil prices, while Italian banks hit their lowest point since end-September on continued worries over a cash call at troubled lender Monte dei Paschi.

The pan-European STOXX Europe 600 index was down 0.8 percent by 0941 GMT. The oil & gas index and the regional banks' index were down 1.4 percent and 1.6 percent respectively, making them the two biggest sectoral fallers.

Shares in oil majors Total, Royal Dutch Shell and Eni fell between 1.4 and 2.3 percent, after oil prices added to Friday's steep losses as doubts re-emerged over the ability of big producing countries to agree output cuts at a planned meeting on Wednesday.

Banks, which had benefited from a rally in U.S. treasury yields following Donald Trump's victory in the race for the White House, were broadly as U.S. treasury yields pulled back from a 16 month highs.

Italian bank fell 3.1 percent, weighing on the broader Milan index, on continued doubts over Monte dei Paschi's ability to execute a 5 billion euros capital cash call.

Investors fear that a failure of the capital raising could heighten worries over the whole Italian banking system, adding to pessimism over political stability ahead of Sunday's referendum on constitutional reform.

"Uncertainty (on Monte Paschi) remains very high," said JCI Capital portfolio manager Alessandro Balsotti, who said that sentiment could brighten if the bank finds an anchor investor.

Monte dei Paschi was suspended for excessive volatility after a drop of more than 12 percent, while the country's strongest bank Intesa Sanpaolo lost 2.9 percent.

Elsewhere among financial services, Aberdeen Asset Management rose up 2.2 percent. Traders cited better-than-expected results, even though the British asset manager continued to suffer outflows.

But Man Group fell 4.6 percent after the stock was downgraded by Exane BNP Paribas to neutral, while London-listed lender CYBG rose 3 percent, helped by an upgrade o "buy" from Goldman Sachs.

Utilities, which had suffered from risings global bond yields becasuse that makes their dividends relatively less attractive, outperformed. The sector index was the only one to trade in positive territory, up 0.4 percent, with Endesa underpinned by a price target upgrade at Credit Suisse.

Copyright Reuters, 2016

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imad_kueconomist@yahoo.com (Imaduddin) Europe Mon, 28 Nov 2016 10:21:37 +0000
Britain's FTSE index slips as crude oil drops http://www.brecorder.com/markets/equity/europe/330117-britains-ftse-index-slips-as-crude-oil-drops.html http://www.brecorder.com/markets/equity/europe/330117-britains-ftse-index-slips-as-crude-oil-drops.html imageLONDON: Britain's top share index retreated on Monday pulled lower by energy shares hit by a decline in oil prices and financial shares concerned over Italian banks.

The blue-chip FTSE 100 index was down 0.7 percent in morning trading after recent gains. The benchmark index is still up about 8 percent so far this year even after falling around 5 percent since its October peak.

Energy shares led the broader stock market lower, with the UK oil and gas index falling 1.7 percent following weaker oil prices.

"Energy stocks drag the FTSE down at the start of the week as uncertainty over an OPEC agreement looms," Jawaid Afsar, senior trader at Securequity, said.

"Overall, as we head into the festive season, markets should retain their poise as the Trump affect sinks in," he said, referring to a sharp rally in stocks on hopes that U.S. President-elect Donald Trump would spend heavily on infrastructure projects.

Crude prices fell more than 1 percent, adding to Friday's steep losses, as doubts re-emerged over the ability of major producers to agree output cuts at a planned meeting on Wednesday aimed at reining in global oversupply.

Shares in BP, Royal Dutch Shell and Tullow Oil 1.4 to 2.3 percent.

Financial stocks also came under pressure, reflecting a sell-off in European banks. Italy's banking index fell 3 percent to an eight-week low on nervousness ahead of a referendum vote on constitutional reforms on Dec. 4 that could topple Matteo Renzi's reformist government.

The UK banking index fell 1.4 percent, dragged down by a 1.7 to 2.8 percent fall in shares of Royal Bank of Scotland, Barclays and Lloyds Banking Group .

Among mid-caps, shares in Man Group fell 4.8 percent after Exane downgraded its rating on the world's biggest listed hedge fund to "neutral", citing continued sluggish fund performance and its impact on the outlook for performance fees and fund flows.

On the positive side, gold miners gather strength from a more than 1 percent rise in gold prices, which recovered from 9-1/2 month lows as the dollar extended losses after touching a near 14-year high last week.

Shares in Randgold Resources, Polymetal and Fresnillo rose between 1.6 percent and 2.2 percent.

Copyright Reuters, 2016

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imad_kueconomist@yahoo.com (Imaduddin) Europe Mon, 28 Nov 2016 10:20:13 +0000