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European stocks steady to lower as markets pause; DAX down 0.20%

Published 11/16/2016, 03:31 AM
© Reuters.  European stocks take a breather after post-U.S. election rally

Investing.com - European stocks were steady to lower on Wednesday, as markets took a breather from the recent post-U.S. election rally.

During European morning trade, the EURO STOXX 50 eased 0.07%, France’s CAC 40 inched up 0.05%, while Germany’s DAX 30 fell 0.20%.

Global equities had strengthened amid hopes that increased fiscal spending and tax cuts under Donald Trump’s administration will bolster economic growth and inflation.

Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) declined 0.23% and 0.50%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) dropped 0.88% and 0.81%.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) tumbled 0.95% and 1.19% respectively. Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) overperformed however, as shares jumped 0.98% and 1.67%.

Elsewhere, Bayer AG (DE:BAYGN) plunged 5.39% after the company said it will issue €4 billion in mandatory convertible notes as part of measures to fund its acquisition of Monsanto (NYSE:MON).

Lufthansa AG VNA O.N. (DE:LHAG) added to losses, with shares down 2.27% following reports management board member Karl Ulrich Garnadt, responsible for the carrier’s low cost unit Eurowings, will step down next year.

In London, FTSE 100 slipped 0.18%, weighed by losses in Barratt Developments (LON:BDEV), whose shares plummeted 2.41% even as the company said there remains "strong demand" for new homes, although the London market remains "more challenging" due to higher selling prices.

Financial stocks were also on the downside, as Barclays (LON:BARC) eased 0.09% and Lloyds Banking (LON:LLOY) edged down 0.11%, while HSBC Holdings (LON:HSBA) and the Royal Bank of Scotland (LON:RBS) dropped 0.69% and 0.82% respectively.

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Meanwhile, mining stocks were broadly higher on the commodity-heavy index. Shares in Antofagasta (LON:ANTO) gained 0.52% and Glencore (LON:GLEN) climbed 0.54%, while rival Anglo American (LON:AAL) surged 2.28%.

WPP Plc (LON:WPP) was also one of the best performers on the index, with shares up 0.97% after analysts at BNP Paribas reiterated their ‘outperform’ rating on the stock.

In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.09% loss, S&P 500 futures showed a 0.09% fall, while the Nasdaq 100 futures indicated a 0.16% slip.

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