LONDON: European stock markets slid on Thursday as volatility continued to dominate global equities trading.
Major Asian stock markets mostly rose after Wall Street ended down.
Around 1030 GMT, London’s benchmark FTSE 100 index dropped 0.6 percent with investors eyeing the Bank of England, which is Thursday set to keep its main interest rate at 0.5 percent and also publish its latest UK growth and inflation forecasts.
In the eurozone, Frankfurt’s DAX 30 slumped 1.0 percent and the Paris CAC 40 lost 0.7 percent compared with the closing levels on Wednesday.
“It’s probably stretching things a bit to say that markets are waiting with bated breath to see what the Bank of England has in store, but given the recent market turmoil central bankers retain their position as the ‘go-to’ people for opinions on whether more volatility is likely,” said Chris Beauchamp, chief market analyst at IG trading group.
A number of major companies meanwhile published results on Thursday.
Shares in Compass rallied 4.5 percent to 1,502 pence after the British caterer gave a rosy outlook.
In Paris trading, Publicis surged 5.2 percent to 58.64 euros after the French advertising giant rebounded into profit during 2017.
Shares in Societe Generale meanwhile jumped 3.9 percent to 46 euros on a lower-than-expected fall in profits at the French bank.
– European rollercoaster –
After slumping in the region of 2.5 percent on Tuesday, Europe’s leading stock markets ended Wednesday’s sessions with gains of between around 1.5 and 2.0 percent.
After a long run of almost uninterrupted gains for world equity markets fuelled by cheap money and optimism about the economy, traders are having to navigate turbulent waters as central banks — led by the Federal Reserve — look to lift borrowing costs.
Last Friday’s strong US jobs and wage growth data, coupled with rising yields on bonds brought an end to the record-setting global rally, sending Wall Street spiralling down before slamming world markets this week.
Asia took the biggest hit on Tuesday, with Hong Kong and Tokyo among the worst affected but others also felt the pinch.
Most of the region’s markets fell further into the red on Wednesday.
On Thursday however, Tokyo ended 1.1 percent higher while Hong Kong was up 0.4 percent, having fallen about eight percent over the previous five sessions.
On the downside, Shanghai tumbled 1.4 percent despite data showing Chinese imports smashed expectations and exports were supported by strong global demand.
Overnight in New York, Wall Street’s three main indices also fell.
Expectations the Fed will hike interest rates more than the three times expected this year have meanwhile lent support to the dollar in recent days.
Gains have been capped however, with the euro winning support from the European Central Bank appearing close to winding in its crisis-era stimulus, while the pound is being supported by hopes for a positive outcome for Britain’s exit from the EU.
Elsewhere, oil prices extended Wednesday’s sharp sell-off on concerns about increasing US production, offsetting an output cap by OPEC and Russia.
Bitcoin continued its recovery, trading up at $8,366.84 from $8,104.80 on Wednesday.
Source: Brecorder.com
