European stocks steady after ECB, OPEC non-moves

Thursday, 02. June 2016 18:08

Stocks in European markets were trying to stay on the winning ground on Thursday, following the decision of the European Central Bank (ECB) to keep the interest rates unchanged. The head of the ECB Mario Draghi said the central bank expected inflation to stay low, and to pick up in the next two years. The ECB says the economic growth would be slow but steady, and warned of the negative potential effect of a Brexit, the United Kingdom's possible departure from the European Union. OPEC did nothing to change fundamentals in the oil production and markets, as the cartel says it was not concerned with demand.

Looking at the boards, the pan-European Stoxx 600 index added 0.14% and the Euronext 100 index inched up 0.06%.

The German DAX index rose 0.11% to close at 10,214 points. Bayer, Volkswagen and RWE were the best performers, while banks didn't enjoy: Commerzbank lost 0.62% and Deutsche Bank slid 0.32%, both in high trading volumes.

In Paris, the CAC 40 finished 0.16% lower at 4,468 points. BNP Paribas fell 3.19%, Technip and Total followed. ArcelorMittal jumped 5.47%, CAP Gemini rose 3.43% and Peugeot was up 2.28%.

Across the Channel, the FTSE 100 crawled up 0.10% to finish at 6,198 points. Johnson Matthey was lifted 6.26% and Standard Chartered rose 2.37%. National Grid "switched off" 4.30%, Marks & Spencer lost 3.83%. Banks mostly fell.

In Milan, the FTSE MIB inched down 0.08% to close at 17,795 points. Anima Holding dropped 3.74%. Banca Popolare Emilia Romagna rose 3.17% and Fiat Chrysler added 2.01% following report on a bit higher U.S. sales in May.

The Spain's Ibex 35 rose 0.60% to 8,970 points. Merlin Properties fell 1.59% and ArcelorMittal was the best performer, rising 5.30%. Banco popular Español added 5.23%.

In Zurich, the SMI added 0.25% to 8,205 points in a subdued session. Novartis, Actelion and Swisscom were the best, while Swiss Life, UBS and Julius Baer were the worst performers.

Crude oil futures were higher: Brent was up 0.52% to $50.00 a barrel, and WTI rose 0.47% to $49.15 a barrel at ICE Europe by 5:50 p.m. CET.

The euro dropped the ECB's wait-and-see decision: the currency was 0.30% weaker to the U.S. dollar, and 0.31% lower against the British pound. It dropped 1.01% to the Japanese yen and was 0.07% lower compared to the Swiss franc by 6:03 p.m. CET.

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Breaking the News / ZR