Major stock markets in Europe finished the trading session mixed dynamics, as investors continued to monitor ongoing political uncertainty in the region.
The Spanish IBEX index rose by 1.44%, recovering losses suffered in the previous session. The head of the government of Catalonia Carles Pujdeme and other leaders in the region yesterday signed a document proclaiming independence from Spain, but has suspended its entry into force for a few weeks, citing the need for a long dialogue with Madrid. Today the Spanish government met in Madrid to give its answer to the Catalan independence movement. The Prime Minister of Spain, Mariano Rajoy said that the government agreed to formally ask the regional government of Catalonia, declared the independence whether they are or not.
Certain influence on dynamics of trading has had the statement of the ECB representative Frank Smits, who noted that he supports the folding program of quantitative easing (QE), however, preferred that this process was gradual. “Re-calibration of the QE should be gradual and cautious as inflation continues to need the support,” said Smits.
Meanwhile, the Ministry of economy of Germany said that the German economy has gained strength, and in the coming years it will continue to grow. According to new forecasts, GDP this year will grow by 2 percent instead of the previously projected growth of 1.5 percent. Similarly, the forecast for 2018 has been increased to 1.9 percent from 1.6 percent. It is expected that exports of goods and services will grow 3.5 percent in 2017 and 4.0% in 2018. The government predicted a temporary rise in inflation to 1.8% in 2017, before easing to 1.6 percent in 2018.
FTSE 100 7533.81 -4.46 -0.06%, DAX +21.43 12970.68 +0.17% CAC 40 5362.41 -1.24 -0.02%
The composite index of the largest enterprises of the region Stoxx Europe 600 Index ended the day unchanged, at the level of 390,15. Most sectors and major stock exchanges recorded a decline.
The main outsider was the basic resources sector – it has fallen by 1.07%. Shares of Mondi, a South African paper company – fell by 7.44%. The firm said that underlying profit in the third quarter rose 8%, driven by higher than expected average selling prices. Nevertheless, a company registered in Johannesburg, said that its annual capacity should be slightly below market expectations.
Quotes GEA Group – German company for processing of food products – has grown by 5.82% to 6-month high, after the hedge Fund Elliot revealed his stake in the firm.
The price of securities Provident Financial fell 4.3%, recording the worst result among the components of the Stoxx Europe 600 Index the Reason for this was news that analysts at Barclays downgraded shares of the company to “insufficient weight” from “equal weight”.
Vitali Nesterenko, an analyst at TeleTrade