• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

European Equities Turn Lower as Investors Weigh Mounting Risks

September 11, 2021
in Finance
Reading Time: 3 mins read
A A
0
European Equities Turn Lower as Investors Weigh Mounting Risks
0
SHARES
14
VIEWS
ShareShareShareShareShare

(Bloomberg) — European stocks retreated, erasing earlier advance, as investors considered risks to earnings and economic growth against the prospect of policy makers maintaining support for the recovery.

The Stoxx 600 Europe Index retreated 0.3% by 3:59 p.m. in London, with telecoms and utilities underperforming, while miners and technology led the gainers.

Stocks extended declines after the news that the Biden administration is said to be weighing a new investigation into Chinese subsidies and their damage to the U.S. economy as a way to pressure Beijing on trade. This could mean another phase of U.S.-China tensions, which can weigh on global growth sentiment.

The main European equities benchmark is on track for a second weekly loss, the first time that’s happened since the end of April, as investors reduced their risk allocations amid fears that central bank stimulus measures might get pulled back quickly. Markets participants are also closely watching inflation data, as prices paid to U.S. producers increased in August by more than forecast, adding to fears about rising costs eating into earnings growth.

“Global stock markets may be entering a period of turmoil,” said James Congdon, global co-head of Quest, a division of Canaccord Genuity. “The ECB and Federal Reserve are considering tapering their bond purchasing programs, inflation concerns continue, and we are beginning to see labor and inventory shortages forcing companies to lower their guidance.”

READ: More Strategists Say a Storm Is Brewing in the U.S. Stock Market

Top Wall Street strategists came out this week with warnings about upcoming volatility in equity markets. Valuations are at historical extremes, stocks have rallied non-stop for seven months, the economy looks soft and the Federal Reserve is preparing to taper stimulus.

Still, many major asset managers remain optimistic about the prospects for equity returns. While the European Central Bank on Thursday said it will slow the pace of its pandemic bond-buying program, it reiterated that this shouldn’t be seen as tapering.

“We expect major central banks to remain supportive of growth, keeping rates lower for longer,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “This is positive for equity markets, particularly cyclical and value areas of the market.”

Antofagasta Surges on Metals, Rubis Falls: EMEA Equity Movers

At Morgan Stanley, the recommendation is also to re-engage with cyclical value stocks in Europe as cyclicals are expected to outperform into year-end. Strategists led by Graham Secker see consensus earnings-per-share growth estimates for European stocks of 7% for 2022 as too low.

“Doubts about the recovery are overdone, the economic growth will be strong in 2021 and 2022, and the ECB yesterday delivered on what was expected,” said Ignacio Cantos, investment director at ATL Capital in Madrid.

His firm has slightly reduced client exposure to European stocks to protect this year’s gains. Cantos said a small correction could happen in the short term, but he’s positive on the outlook through year-end.

Among individual mover highlights, ASML Holding NV gained 1.6% after Oddo raised its price target on the semiconductor equipment stock. Fresenius Medical Care AG dropped 4.4% as Barclays Plc and JPMorgan Chase & Co. cut their ratings, while Rubis SCA declined 7.4% following first-half results.

Luxury stocks rose as LVMH advanced after HSBC upgraded its rating of the French company.

For a daily wrap highlighting the biggest movers among EMEA stocks, click hereYou want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance.

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Where to buy Shibance as WOOF heads to the moon

Next Post

ChangeNOW releases NOW Tracker app publicly

Related Posts

Surgent Accounting & Financial Education Presents New Online CPE Course on Tax Implications of Just-Passed Inflation Reduction Act
Finance

Surgent Accounting & Financial Education Presents New Online CPE Course on Tax Implications of Just-Passed Inflation Reduction Act

August 13, 2022
5
The market isn’t going away and it’s going to be a massive commercial opportunity
Finance

The market isn’t going away and it’s going to be a massive commercial opportunity

August 13, 2022
6
ServiceNow CEO is optimistic that a recession would be ‘short-lived’
Finance

ServiceNow CEO is optimistic that a recession would be ‘short-lived’

August 13, 2022
6
Filo Mining Reports Q2 2022 Results; Drilling Campaign Extends High-Grade Mineralization and Discovers New Porphyry Centre
Finance

Filo Mining Reports Q2 2022 Results; Drilling Campaign Extends High-Grade Mineralization and Discovers New Porphyry Centre

August 12, 2022
6
Bengal Energy Announces Fiscal 2023 First Quarter Results
Finance

Bengal Energy Announces Fiscal 2023 First Quarter Results

August 12, 2022
3
Next Post
ChangeNOW releases NOW Tracker app publicly

ChangeNOW releases NOW Tracker app publicly

Recommended

Apple Discontinues Support for Sanctioned Russian Banks On App Store

Apple and Amazon Q2 Earning Reports Incoming: Can This Impact Crypto?

July 28, 2022
7
Crypto.com obtains a South Korean licence following key acquisitions

Crypto.com obtains a South Korean licence following key acquisitions

August 8, 2022
8
Runway Growth Finance Corp. Prices Offering of 7.50% Notes due 2027

Runway Growth Finance Corp. Prices Offering of 7.50% Notes due 2027

July 22, 2022
8
IMF to Cut Global Growth Outlook ‘Substantially’ at Next Review

IMF to Cut Global Growth Outlook ‘Substantially’ at Next Review

July 17, 2022
5
Lawrence Dallaglio Appointed Strategic Global Advisor for Caduceus to bring Sport into the Metaverse

Lawrence Dallaglio Appointed Strategic Global Advisor for Caduceus to bring Sport into the Metaverse

August 9, 2022
5
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Binance’s User Count Growing Due to Inflation, Says the Company’s Latin America Head
  • Surgent Accounting & Financial Education Presents New Online CPE Course on Tax Implications of Just-Passed Inflation Reduction Act
  • The market isn’t going away and it’s going to be a massive commercial opportunity

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?