• European stock fell

Market news

20 March 2014

European stock fell

European stock indices show a decrease in response to yesterday's announcement by the head of the Federal Reserve Janet Yellen that the first rate hike will occur closer to the middle of 2015. U.S. index futures are little changed , while Asian shares fell .

Recall that yesterday Open Market Committee of the Federal Reserve decided to cut from April buyback of government bonds and mortgage-backed securities to $ 55 billion to $ 65 billion . In addition, the results of the Fed's next meeting has kept its benchmark interest rate at a record low of 0-0.25 % per annum.

It was also reported that the U.S. Federal Reserve will take into account a wide range of factors when making decisions about the base interest rate , which is currently at the level of 0-0.25 %. Earlier, the Fed focused mainly on unemployment and inflation. However, plans for a sharp increase in rates by the regulator in any case no . "In the background of the unemployment rate to 6.5% , the Committee decided to change the approach to the rate increase. Will be assessed a number of factors, including the labor market , inflationary pressures , as well as the state of the financial sector . Fed members believe that the rate will be acceptable to keep for a long time after the end of QE, especially if inflation is below 2 %, " - said the Fed .

The Stoxx Europe 600 Index fell 0.6 percent. Since the beginning of the year , the index fell by 0.7 percent.

Many market participants are waiting for new statistical data from the United States: a weekly report on the labor market , home sales in the secondary market as a leading indicator . It is expected that the number of applications for unemployment benefits will rise to 327 thousand from 315 thousand , housing sales in the secondary market will rise to 4.65 million from 4.62 million, and the leading index added 0.3 %.

Also today, the outcome will be made public stress test the U.S. banking sector . expected

Shares of GlaxoSmithKline Plc - British pharmaceutical company , fell 2 % , as its experimental drug to treat lung cancer clinical trial failed .

Cost Munich Re - the largest reinsurance companies in the world , rose 1.9% after the announcement of a new share buyback by 1 billion euros to May 2015 , while still not completed the previous program of the same volume . Investors are not yet responded to the message of the expected decline in profits in 2014 by 9% - up to 3 billion euros.

Securities exchange operator Deutsche Boerse AG fell 2.5% after JP Morgan Cazenove downgraded the rating of the stock from " neutral" to " underperform ."

Cost Siemens AG rose 0.8 percent , as experts UBS AG upgraded the stock the largest engineering company in Europe to the level of "buy" from "neutral" , referring to the fall in stocks this year. Siemens has lost 4 percent in 2014.

At the current moment

FTSE 100 6,499.28 -73.85 -1.12 %

CAC 40 4,267.26 -40.80 -0.95 %

DAX 9,177.84 -99.21 -1.07%

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.