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European stocks open mixed, Draghi speech in focus; Dax up 0.44%

Published 05/02/2016, 03:33 AM
Updated 05/02/2016, 03:33 AM
© Reuters.  European stocks mixed as BoJ still weighs, Draghi remarks on tap

Investing.com - European stocks were mixed on Monday, as markets were still rattled by the Bank of Japan’s decision last to week to leave its monetary policy unchanged and as investors eyed a speech by European Central Bank President Mario Draghi scheduled later in the day.

During European morning trade, the EURO STOXX 50 fell 0.25%, France’s CAC 40 added 0.18%, while Germany’s DAX 30 gained 0.44%.

Markets were still jitter after the BoJ chose on last Thursday to hold its monetary policy, defying market expectations for additional monetary easing.

The decision came a day after the Federal Reserve left interest rates unchanged close to zero on Wednesday and offered little guidance on future rate hikes.

Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) lost 0.39% and 1.15%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) plummeted 1.29% and 3.89%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) plummeted 2.40% and 4.45%. Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) overperformed however, with shares adding 0.16% and 0.25% respectively.

Elsewhere, BASF SE (DE:BASFN) NA O.N. (SIX:BASFZ) plunged 3.01% after the chemicals company’s CEO warned shareholders on Friday that low global oil prices would continue to weigh on the group’s profitability during the current year.

Airbus Group (PA:AIR) added to losses, with shares down 0.95%, still affected by last Thursday’s announcement of a 50% decline in first-quarter profit.

In London, FTSE 100 lost 1.27%, weighed by Sports Direct (LON:SPD), whose shares dove 6.50% after the company’s owner, Mike Ashley said he plans to acquire the BHS store chain and save all 11,000 jobs there.

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Financial stocks were also broadly lower, led by the Royal Bank of Scotland (LON:RBS), down 6.05%, amid reports the lender is implicated in a global investigation into alleged corruption relating to Malaysia's state investment fund, 1MDB.

The Swiss authorities were said to have launched an inquiry in relation to "certain client accounts held with Coutts," which is the former Swiss-based arm of RBS's private bank.

Lloyds Banking (LON:LLOY), Barclays (LON:BARC) and HSBC Holdings (LON:HSBA) were also on the downside, with shares plummeting 1.53%, 1.66% and 3.18% respectively.

In the mining sector, stocks were mixed. Shares in Rio Tinto (LON:RIO) tumbled 1.06% and Bhp Billiton (LON:BLT) plummeted 1.27%, while Fresnillo (LON:FRES) rallied 1.64% and Glencore (LON:GLEN) surged 4.12%.

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% uptick, S&P 500 futures a 0.04% gain, while the Nasdaq 100 futures indicated a 0.06% dip.

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