European stock market is mixed

11.10.2016

The European Stock indexes are mixed during Tuesday session. Market participants are studying the possibilities of interest rate hike by the Federal Reserve (Fed) and the agreement between OPEC and other oil producers to restrict production.

The composite index of the largest companies in the region Stoxx Europe 600 was down by 0.1%, to 341.70 points.

The index of the 50 largest enterprises of the Eurozone – Euro Stoxx 50, rose 0.03%, the British FTSE 100 rose 0.23%, the French CAC 40 rose 0.16%, and the German DAX has not changed. However, the Spanish IBEX 35 and the Italian FTSE MIB fell 0.1%.

Traders estimate the chances of the Fed raising rates by the end of 2016 at 68% versus 50% reached on September 27th.

Istanbul continues to host the 23rd World Energy Congress. The International Energy Agency (IEA) expects a more rapid restoration of the balance in the oil market as a result of the agreements on the production cut by OPEC.

However, the IEA notes record volumes of oil production by OPEC countries - 33.64 million barrels per day.

In addition, the market's attention was focused on corporate reporting. The US reporting season unofficially starts on October 11 with the quarterly results of Alcoa Inc (NYSE: AA). In Europe, the process will start some days later.

The stock prices in the "luxury" segment are growing on data from LVMH Moet Hennessy Louis Vuitton, which reported a revenue growth by 4% for the first 9 months of 2016. LVMH’s shares rose 4.6%, Cie. Financiere Richemont and Christian Dior rose 4%, Burberry (LON: BRBY) Group and Hugo Boss rose more than 2%.

The market value of the British manufacturer of heat-resistant plastics, Victrex Plc, jumped 6.7% due to positive financial results.

The share price of Airbus fell 2% after the loss of a Polish contract for the supply of helicopters. The analysts from JPMorgan Chase & Co. expect weak results for the third quarter.

The banking sector is again left in a minus because of concerns related to the stability of the European financial companies: UniCredit (MI: CRDI) lost 1.7%, Deutsche Bank (DE: DBKGn) and Banca Popolare di Milano fell 1.4%, and Raiffeisen Bank fell 1.3%.

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