Stoxx 600 down 0.75% after China data, BoE eyed . . . . . . . . . . . . . . European stocks traded in the negative territory on Thursday, after data showed weaker-than-expected trade data for June, raising concerns over the recovery of the world`s second-largest economy. Declines in Asian equities and a negative close on Wall Street overnight weighed on the European sentiment this morning, with the Stoxx Europe 600 tumbling 0.75% at 337.43 as of 04:49 a.m. ET. the majority of the sectors pushed to the downside in the early part of the Euroepan session, with banking shares leading the slide by 1.40% loss. - Germany`s DAX 30 was down 1.06% at 9,704.75 - France`s CAC 40 was down 1.07% at 4,313.04 - Britain`s FTSE 100 was down 0.67% at 6,672.46 Among the equity movers, Banco Espirito Santo SA plunged 9.43% to 0.552 euros amid creditors concerns that the Portugese bank may suffer losses after it missed debt payments. Burberyy Plc rose 1.90% to 14450.00 pence after the group reported a 12% rise in first-quarter comparable sales. The shares rose as much as 5.3% earlier on the news. Attention to policy normalization and its communication to the markets were highlights of yesterday’s FOMC minutes that confirmed expectations for gradual tapering of asset purchases followed by the first rate hike sometime next year. Lack of alarm over the inflation outlook was another positive in the minutes. On the economic front, China trade balance surplus came below forecasts at 31.60 billion yuan in June compared with a previous surplus of 35.92 billion yuan in May, while analysts expected a surplus of 36.95 billion yuan. On the other hand, exports rose 7.2% in June from a year earlier, the best pace in five years, but well below an average forecast for a rise of nearly 10.5%. Today`s reading is a positive sign of improvement for the world`s second largest economy after exports witnessed a period of slowdown along with weakness in manufacturing activity. Meanwhile, markets will be looking for the policy outcome by the Bank of England, expected to hold its monetary stance in July despite signs of remarkable improvement in the British economy. Markets will look again for the string of economic data out of the UK on Thursday, with trade balance report due to be released later in the session and will likely offer fresh hints over the health of the UK economy. Britain’s trade numbers will probably provide signs of solid improvement amid constant improvement in foreign demand and eased debt crises the euro-area, the UK largest trading partner, while confidence levels are seen edging up. At 08:30 GMT, the London-based Office for National Statistics will release UK February`s trade figures, expected to show: - Visible trade balance deficit probably narrowed to -8750 from -9624 - Trade balance non EU deficit likely fell sharply to -3500 vs. -3783 - Total trade balance deficit expected at -1600 after -2543 a month earlier #egyptyard
Posted on: Thu, 10 Jul 2014 10:25:54 +0000
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