Main topics of the day in European markets: stock indices decline, the growth of the Euro after the ECB President, Google record fine from the European Commission, the increase in the buffer capital of the British banks



Leading stock indexes of Europe on Tuesday falling on the background of negative dynamics of shares of telecommunications, industrial and consumer sectors. Some support to the market by buying shares of commodity companies, due to the increase in oil prices and profit growth of industrial enterprises in China.

According to a report by the National Bureau of statistics of China, the profits of China’s industrial sector in may increased by 16.7% yoy, accelerating an increase from 14.0% in April. Higher growth was recorded due to increased sales and improved return on investment. The ratio of debt to equity of Chinese industrial enterprises decreased to 56.1% compared to 58.7% in April.

By 14:45 GMT the pan-European Stoxx Europe 600 fell 0.6%, compared with yesterday’s closing level amid the decline of the British FTSE-100 index by 0.2%, Germany’s DAX up 0.5 PCT, France’s CAC 40 rose 0.6%.

Shares of European oil and gas sector demand of investors against the background of rising oil prices by nearly 1%. The price of the near contract on Brent crude to the current time has reached $ 46.42 per barrel.

Better market also look shares of Spanish Bank Bankia, which gained 3.9% on reports that it has acquired a controlling stake in the Bank BMN.

Among leaders of decrease there were actions of the German automotive supplier Schaeffler (-10.1%), published the weak data on net profit for the II quarter of this year, and worsened the financial forecast.

The Euro rose to a two-week high against the dollar USA (1.1276) after the speech of the head of the European Central Bank (ECB), Mario Draghi, said the ECB must carefully adjust its monetary policy, assessing the pace of economic recovery. However, Draghi noted that monetary stimulus should be maintained, because the dynamics of inflation remains “more restrained than expected”.

Earlier, some European economists have expressed doubts about the need to continue the soft monetary policy of the ECB, given that inflation in the Eurozone has accelerated, economic growth was close to forecast, as political uncertainty dissipated. However, Mario Draghi, while acknowledging economic improvements, said that the premature end stimulus programs could lead to a new recession, in a speech about tightening monetary policy.

“Given that the economy continues to recover, a permanent monetary attitude will become more accommodative and the Central Bank will be able to accompany the recovery, adjusting the parameters of its monetary instruments is not for the purpose of toughening of a political mood, and to keep it unchanged in a broad sense,” said Draghi.

Later on Tuesday it is expected the speech of the fed Janet Yellen, which you can tell about the current mindset of us regulators.

The Bank of England today announced the increase of the reserve requirements of Bank capital in a countercyclical purposes. These ratios increased to 0.5% from 0.0%, bringing the total amount of buffer capital to British banks will have to increase by 11.4 billion pounds to protect the banking sector from the economic risks associated with the UK out of the EU and the accelerated growth of consumer lending in the country.

Antitrust Agency of the European Union today announced the levying of a penalty from Google for a record sum of 2.4 billion euros in the first phase of a tripartite investigation, which lasts for several years.

“Google is abusing its dominance as a search engine, providing illegal benefits to another Google product – it service, comparison shop,” – said Tuesday the representative of the European Commission.

The investigation against Google began after the receipt by the Commission of numerous complaints from American and European competitors Google, which accused him that he is abusing a dominant position in the market by promoting your Google Shopping and creating a monopoly for consumers at the expense of other retailers.

Prepared using materials MarketWatch and CNBC.




Main topics of the day in European markets: stock indices decline, the growth of the Euro after the ECB President, Google record fine from the European Commission, the increase in the buffer capital of the British banks 27.06.2017

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