Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

Europe Stocks Head Lower Early as BoE, Russian Attacks Keep Mood Grim

Published Oct 11, 2022 03:40AM ET Updated Oct 11, 2022 04:02AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
IMB
-0.96%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TFMBMc1
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GIVN
-0.35%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
STOXX
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IRTS
-2.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FTMC
+0.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith 

Investing.com -- European stock markets opened lower on Tuesday for a fifth straight session after the Bank of England warned of a "material risk to U.K. financial stability" from the unfolding crisis in the country's pension fund sector.

The grim mood was also reinforced by reports of fresh air raid warnings in Ukraine, after the indiscriminate wave of Russian missile strikes on Monday appeared to point to another escalation of Russia's war.

By 03:45 ET (07:45 GMT), the benchmark Stoxx 600 was down 2 points or 0.5% at 388.14, while the narrower Eurozone Stoxx 50 was down 0.4%. Among national markets, the biggest loser was Russia's RTS, which fell another 1.5% after slumping 12% already over the last week. In western Europe, the FTSE 100 was down 0.7%, while the U.K.-focused FTSE 250 midcap index was down 0.6%. Germany's DAX fell 0.6%, while the FTSE MIB 40 fell 1.4%.

European markets drew little support from reports that the German government had shifted its position to support the issuance of EU debt to help fund the bloc's response to the natural gas crisis this winter. That news did, however, support gas prices themselves, with the benchmark front-month Dutch TTF contract rising nearly 5% to 168.14 euros a megawatt hour.

Banks underperformed across the continent after the Bank of England's warning about the bond market and the problems of pension funds that engage in 'liability-driven investing', a strategy that has forced them to liquidate holdings of safe assets in order to provide more margin on long-dated interest rate derivatives.

Italian banks - always sensitive to sharp rises in market interest rates - fared the worst, with Banco Bpm SpA (BIT:BAMI) down 4.9% and Unicredit (BIT:CRDI) down 2.9%. Deutsche Bank (ETR:DBKGn) and Commerzbank (ETR:CBKG) also both fell 3.0%.

Defensive-themed industries fared slightly better, with brewing giants Carlsberg (CSE:CARLb) and Heineken (AS:HEIN) rising 1.0% and 0.5%, respectively, while Unilever (LON:ULVR) stock rose 0.5% and Imperial Brands (LON:IMB) - supported by last week's buyback announcement - rose 0.4%.

The market is now bracing for the third-quarter earnings season, which begins for Europe with the release of LVMH (EPA:LVMH) and Givaudan (SIX:GIVN) results after the close. The U.S. earnings season begins in earnest on Friday.

Europe Stocks Head Lower Early as BoE, Russian Attacks Keep Mood Grim
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Bhagwan Dass
Bhagwan Dass Oct 11, 2022 6:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Europe is fail by us
Brad Albright
Brad Albright Oct 11, 2022 6:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Of, one day, your hut is attacked, do not hope for aid in your defense.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email