• Major European stock indices trading in the red zone

Market news

27 September 2016

Major European stock indices trading in the red zone

After rising at the opening the European stock indices decline on fears for the economy of the region and especially the banking sector.

In early trading the main positive factor for the global stock markets were the results of the first televised US presidency debate.

In the opinion of many market participants, Clinton seemed preferable. According to a CNN poll, 62% of viewers gave the victory in the first round to her. Democratic candidate Donald Trump managed to get on the defensive during the greater part of the discussion.

Investors also evaluated by statistical data for the euro area. Eurozone money supply growth accelerated in August, and the lending of households increased at a steady pace, said the European Central Bank.

Broad money M3 increased by 5.1 percent year on year in August, faster than the growth of 4.9 percent in July.

Economists had forecast that the growth rate will accelerate to 4.9 percent compared to the initially estimated rise in July of 4.8 percent.

Similarly, M1 aggregate, which includes cash in circulation and overnight deposits, increased by 8.9 percent in August after rising 8.4 percent in July.

Deposits placed by households increased by 5.2 per cent and deposits from non-financial corporations rose by 7.1 per cent.

The data showed that the annual rate of credit growth in the private sector amounted to 1.5 percent in August, compared with 1.4 percent in July.

Loans to the private sector increased by 1.7 percent in August, the same rate as in July. In addition, household loans grew at a steady pace of 1.8 percent, and loans to non-financial corporations rose by 1.9 per cent.

The composite index of the largest companies in the region Stoxx Europe 600 fell 0,6% - to 338.05 points.

The energy sector was mixed, as market participants are preparing for the informal meeting of OPEC members this week, which should be discussed a production freeze.

French oil and gas giant Total SA gained 0.5%, the Italian ENI rose 0.6%, while the Norwegian Statoil fell by 0.2%.

The financial sector as a whole grew, as French lenders BNP Paribas and Societe Generale rose 0.3% and 0.4%, while Germany's Deutsche Bank up 1.6% after the collapse of more than 6% on Monday amid reports that the German government will not provide state aid to the bank.

Shares of Commerzbank, on the other hand, fell by 0.6% on news that the lender plans to cut about 9,000 jobs in the coming years.

Shares of French telecom group Orange SA jumped 2.1% after Credit Suisse analysts raised their rating to "outperform."

Carnival shares rose 2.5% after the company raised its profit forecast and announced its increase of 17% in the last quarter.

At the moment:

FTSE 6803.48 -14.56 -0.21%

DAX 10300.42 -93.29 -0.90%

CAC 4381.89 -25.96 -0.59%

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