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    17:05pm 11th August 2017

    European Markets Slid Further Amidst Rising Geopolitical Tensions

    BRUSSELS/FRANKFURT/PARIS (Alliance News) – The European markets ended Friday’s session in the red, extending the losses of the past few sessions. Investors remain rattled by the escalating tensions between North Korea and the US. The European markets suffered their heaviest losses in November this week.

    Energy stocks were under pressure Friday, as crude oil prices weakened. Mining stocks also turned in a weak performance after Chinese base metal prices fell.

    The pan-European Stoxx Europe 600 index weakened by 1.09%. The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.79%, while the Stoxx Europe 50 index, which includes some major UK companies, lost 1.15%.

    The DAX of Germany dropped 0.00% and the CAC 40 of France fell 1.06%. The FTSE 100 of the UK declined 1.08% and the SMI of Switzerland finished lower by 0.74%.

    In Frankfurt, Innogy dropped 1.60%. The utility maintained the outlook on the current year’s business performance after reporting a fall in first-half net income to EUR817 million from EUR1.08 billion last year.

    Volkswagen finished higher by 0.23% after ending discussions with Tata Motors on a potential alliance.

    In Paris, Total SA weakened by 1.81% and TechnipFMC surrendered 2.56%.

    In London, Old Mutual fell 3.08%. The financial services firm, which is in the middle of breaking up into four parts, plans to list two divisions in 2018.

    Tullow Oil sank 6.02% and BP forfeited 2.18%.

    Mining stocks turned in a weak performance after Chinese base metal prices fell. Anglo American dropped 3.05% and Rio Tinto fell 3.15%. BHP Billiton declined 2.87% and Glencore finished lower by 2.85%.

    Biotech company Novozymes gained 1.16% in Copenhagen after cutting its growth outlook.

    Germany’s consumer price inflation accelerated to a three-month high in July, final data from Destatis showed Friday.

    Inflation, based on consumer prices, grew 1.7% annually, slightly faster than the 1.6% increase registered in June. This was the fastest since April and came in line with the flash estimate published on July 28.

    Germany’s wholesale price inflation eased to an eight-month low in July, data from Destatis showed Friday. Wholesale prices advanced 2.2% on a yearly basis in July, slower than the 2.5% increase in June. This was the weakest growth since November 2016, when prices gained 0.8%.

    French inflation held steady in July, as estimated initially, final data from the statistical office Insee showed Friday. Consumer prices climbed 0.7% year-on-year in July, the same rate as seen in June and in line with the preliminary estimate.

    French payroll employment increased notably in the second quarter, the statistical office Insee said Friday. Private payroll employment climbed 91,700 or 0.5% from the first quarter. Employment had advanced 57,700 or 0.3% in the first quarter.

    A report released by the Labor Department on Friday showed a modest uptick in consumer prices in the US in the month of July. The Labor Department said its consumer price index inched up by 0.1% in July after coming in unchanged in June. Economists had expected prices to rise by 0.2%.

    Copyright RTT News/dpa-AFX