On Thursday, European markets ended lower as the stocks failed to move higher even Wall Street resumed its December rally. The pan-European Stoxx 600 provisionally ended in a negative zone as the index declined ~0.22%, with autos falling ~0.8% to lead the declines. Nearly all sectors and major bourses closed in negative territory. Downturn in Asian and European markets came after the US stocks saw a sharp fall Wednesday, with investors booking profits post 9 straight positive sessions. Much of the gains over the past few sessions were seen as there were bets about major global central banks trimming interest rates in the next year.
European markets ended lower
Since European markets ended lower, automobile and parts index and real estate stocks saw most of the declines, with sector down by ~0.8%. Healthcare stocks somehow limited the fall as the index went up by ~0.2%.
Germany’s DAX index went down by ~0.3% as there was a survey which showed that retailers’ sentiment in the country’s biggest economy remained subdued in the December month, with Christmas shopping declining and failing to give boost. Not only this, the expectations for coming months remained gloomy too. Risk appetite of investors resulted in STOXX 600 reaching a 11-month high in the prior week and Italy’s benchmark bond yield to the lowest level in around 15 months.
Oil prices went up
Oil prices went up by ~1% as Angola decided to leave the OPEC group, resulting in gains post concerns regarding global trade disruptions in Red Sea. European Central Bank’s (ECB) Vice President stated on Thursday that its quite early to discuss regarding the interest rate cuts. This is also one of the reasons which led to the decline in European markets.
Let us now discuss some stock-specific movements and news. Britain’s Harbour Energy went up by ~23% as the company decided to acquire Wintershall Dea’s non-Russian oil and gas assets for the consideration of $11.2 billion share and cash deal with BASF and LetterOne. Italian energy company decided to sell ~9% stake in low-carbon and retail unit Plenitude. This sale will be made to Energy Infrastructure Partners (EIP) in 10-billion-euro ($11 billion) deal, ehich also includes debt. However, Eni’s shares remained flat.
Finally, Commerzbank saw an increase of ~1.3% post the news that it has received approval from the ECB to buy back up to 600 million euros ($656.88 million) in the form of shares.
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