European markets stumble on BOJ rates, expecting Fed

Tuesday, 15. March 2016 09:46

Stock markets across Europe traded lower from the open, as economists and investors were looking into details of decision by the Bank of Japan not to change interest rate and keep its "quantitative and qualitative easing" policy steady. The attention of markets is now expected to turn towards the U.S. Federal Reserve, as the Federal Open Market Committee starts a two-day monetary policy meeting in Washington.

In Frankfurt, the DAX index opened half a percent lower and kept sliding 0.59% to 9,931 points by 9:43 a.m. CET. While there were no big losses, investors traded carefully: Deutsche Börse was the best advancer, gaining 0.11%, while Linde lost 1.96%, and Volkswagen, RWE, BASF followed with over 1.30% of losses each.

The French CAC 40 was down 0.76% at 4,472 points. ArcelorMittal plunged 23.00%, while Alstom dropped 2.25%, and LafargeHolcim was down 2.22%. Safran, Essilor, Bouygues and Publicis moved between gains and losses.

French investors were looking into consumer prices data. The Consumer Prices Index (CPI) grew by 0.3% in February, after falling 1.0% in January, while seasonally adjusted prices fell by 0.2%. In the annual level, consumer prices fell 0.2% (for the first time since March 2015), after a rise of 0.2% in January 2016. Prices movement was decidedly influenced by lower energy prices, according to the National Institute of Statistics and Economic Studies (Insee).

Prices of manufactured products recovered sharply in January, rising 1.0% after a decline of 3.0% in January, due to the end of winter sales: clothing and footwear, jewellery, clocks and watches, furniture and furnishings added the most. Prices of health products continued to decline. Manufactured products prices slid 0.1% for the year ending in February.

In London, The FTSE 100 rolled down 0.83% to 6,123 points. Antofagasta shares sunk over 8.86% after the Chilean mining company reported net earnings of $5.5 million, compared to $422.4 million a year ago. Revenues sunk 34% to $3.39 billion. Antofagasta said there will be no final dividend for 2015, and the interim dividend stays at 3.1 pence. Antofagasta help dig in all the mining sector: Anglo American lost 9.04%, BHP Billiton dropped 6.07%, and Glencore dipped 5.5.55%. The Royal Bank of Scotland was the best advancer, and gained 1.43% by 9:30 a.m. CET.

The Swiss Market Index followed the trend and fell 0.58% to 7,972 points. Geberit lost 2.37%, LafargeHolcim slid 1.88%, and Richemont was down 1.87%. Transocean rose 1.57% and Syngenta struggled for gains, adding 0.10% by 9:50 a.m. CET.

The euro rose 0.53% against the U.K. pound, inched down 0.015 versus the Swiss franc and slid 0.06% compared to the U.S. dollar at 9:52 a.m. CET.

Related Links: 
Author:
Breaking the News / ZR