Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

European stocks mixed after ECB policy move; DAX dips 0.01%

Published 12/09/2016, 03:48 AM
Updated 12/09/2016, 03:48 AM
© Reuters.  Frankfurt Stock Exchange

Investing.com - European stocks were mixed on Friday, as markets digested the European Central Bank’s latest policy decision and investors began to turn their attention to the Federal Reserve’s meeting next week.

During European morning trade, the EURO STOXX 50 edged down 0.11%, France’s CAC 40 added 0.15%, while Germany’s DAX 30 dipped 0.01%.

European equities rallied on Thursday after the ECB said at its monthly policy meeting that it would extend its asset purchase program for an additional nine months.

Beyond the program’s scheduled end in March 2017, the central bank said net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary.

In addition, the ECB left its benchmark interest rate unchanged at a record-low of zero, in line with forecasts.

Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) declined 0.49% and 0.60%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) tumbled 1.40% and 2.01%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) lost 1.36% and 2.58% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) retreated 0.85% and 0.81%.

German insurer Allianz (DE:ALVG) saw shares drop 0.41% after the Financial Conduct Authority (FCA) published Friday proposals for rules and guidance on payment protection insurance complaints (PPI).

On the upside, Vivendi (PA:VIV) SA rallied 2.14% after the French media group increased its ownership stake in Ubisoft Entertainment (PA:UBIP) to 25.15% of the outstanding stock, taking annother step toward a hostile takeover battle.

According to French law, once a buyer owns more than 30% of a company's shares, they must make an attempt to purchase a controlling stake for a reasonable price.

In London, FTSE 100 edged up 0.15%, helped by Smith & Nephew (LON:SN), whose shares surged 2.57% after analysts at Morgan Stanley (NYSE:MS) raised their recommendation on the stock from “Equal-Weight” to “Overweight”.

Mining stocks were also broadly higher on the commodity-heavy index. Shares in Rio Tinto (LON:RIO) rose 0.30% and Glencore (LON:GLEN) gained 0.31%, while Fresnillo (LON:FRES) advanced 0.77% and Anglo American (LON:AAL) jumped 0.92%.

Meanwhile, financial stocks were broadly lower. HSBC Holdings (LON:HSBA) slipped 0.25% and the Royal Bank of Scotland (LON:RBS) declined 0.39%, while Lloyds Banking (LON:LLOY) and Barclays (LON:BARC) tumbled 1.37% and 1.44% respectively.

Capita Plc (LON:CPI) was one of the worst performers on the index, as shares dove 9.58% after the outsourcing company announced plans to replace staff with robots in a move to reduce costs.

In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.03% gain, S&P 500 futures showed a 0.08% downtick, while the Nasdaq 100 futures indicated a 0.15% fall.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.