Europe Stocks Little Changed as Miners Offset Banking Losses
Europe Stocks Little Changed as Miners Offset Banking Losses: –European shares pared losses to trade little changed as gains in miners offset a decline in banks led by Deutsche Bank AG.
Germany’s biggest bank fell 1.9 percent as people familiar with the matter said talks with the U.S. Justice Department to resolve a probe into mortgage-backed securities are continuing, after Germany’s Bild newspaper reported that Chief Executive Officer John Cryan wasn’t able to reach an agreement at a meeting in Washington. A measure of commodity producers posted the best performance of the 19 industry groups on the Stoxx Europe 600 Index as metals prices rose.
The Stoxx 600 slipped 0.1 percent to 339.41 at 10:45 a.m. in London, after earlier falling as much as 0.6 percent. European shares last week capped their fourth weekly decline in five, after a rally from a June low petered out in early September. Investors withdrew money from the region’s equity funds for a record 35th week as of Oct. 5, a report from Bank of America Merrill Lynch showed on Friday.
“Deutsche Bank is lower after Cryan returned from Washington empty handed and that’s weighing on banks as well as broader concerns in the sector,” said Michael Hewson, a market analyst at CMC Markets in London. “We’re probably going to get more choppy trading in a fairly sideways range in European markets this week as earnings start to come into focus.”
Investors will be watching the upcoming reporting season for indications of the health of corporate Europe, with companies including LVMH Moet Hennessy Louis Vuitton SE and Givaudan SA among the first to release third-quarter earnings this week. Analysts forecast a 4.2 percent contraction in three-month profit for Stoxx 600 members.
Goldman Sachs Group Inc. has warned that political risks, exacerbated by a weak economy in Europe and high stock prices in the U.S., make European and U.S. markets vulnerable to declines in the next three months. The firm projects that the S&P 500 Index and the Stoxx 600 will each drop by about 2 percent by December.
Among other stocks moving on corporate news today, Ingenico Group SA slid 3.8 percent after Barclays Plc cut its rating of the French payments processor to equal weight, similar to hold, from overweight, citing tougher competition.
William Hill Plc climbed 1.6 percent after the U.K. bookmaker announced it’s in talks on a possible combination with PokerStars owner Amaya Inc. of Canada. Vivendi SA added 1.2 percent after Vincent Bollore’s investment company raised its stake in the French media conglomerate to more than 20 percent.
Source:- http://www.bloomberg.com/news/articles/2016-10-10/brexit-bulletin-may-away-as-pound-keeps-falling
