February 16. European stocks traded down, amid a decline in the mining and energy sector. Reduced prices for metal and low oil prices provoked the sale of shares of mining companies. Shares of Anglo American PLC fell by -2.6%, Antofagasta PLC decreased by -1.6% and Glencore PLC lost -0.4%. Among oil companies, shares of Royal Dutch Shell PLC lost -1.7%, while BP fell by -1.6%. Despite a slight decrease in the indices after the start of trading in Europe, investor sentiment remains positive. A positive assessment of the state of the US economy from the US Federal Reserve and the promise of President Donald Trump to submit a new tax plan in the near future, did not go unnoticed by European investors. During a two-day speech in front of senators and congressmen, Fed Chairman Yelen confirmed the central bank’s plans to raise interest rates several times this year. The exact date of the next rate increase was not called. At the same time, Yellen noted that delaying the interest rate increase is bad for the economy. Profit report better than expected published by Air France-KLM and Capgemini. Shares of Nestlé SA declined, losing -1.6%, after the company reported a drop in sales. Cobham PLC shares fell by -20% after the British aerospace spokesperson reported a drop in profits. As the EU summit in Brussels approaches, more and more disputes arise over whether Theresa May will make a statement about the UK leaving the EU. Euro Commissioner for Economics and Financial Affairs Pierre Moscovici paid an official visit to Athens yesterday. During a meeting with the leadership of the country, they discussed the preparation of a report on the situation with Greek debt. The unemployment rate in France in the fourth quarter was 10.0%, with a forecast decline to 9.7%. Italy’s trade balance in December was 5.80 billion, with a forecast of 4.0 billion.

Overview prepared by Fort Financial Services Research.

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