European stocks dropped to an extent after seeing growth for four consecutive days. This happened as investors weighed equity valuations after the Stoxx Europe 600 Index rallied to a five-year high. However, there is no impact on Asian market today as they are doing fairly well and expected to better this week amidst the Chinese reforms.
In European stock market Paddy Power Plc slumped the most since January 2009. The loss is attributed to the company’s forecast wherein it has cut its full-year profit growth to an extent. However, there was a positive outlook for EasyJet Plc which went up by 4.3 percent. EasyJet Plc, Europe’s second-biggest discount carrier, came up with a good data; its stocks went higher as it will give additional dividend after full-year profit increased 51 percent.
Performances of Major Indexes
After receiving better growth in the last two days, the Stoxx 600 declined 0.4 percent to 323.37 at 8:07 a.m. in London on Monday. Earlier the gauge jumped to its highest level since May 2008 and was expected to go up further. However, currently, the Stoxx 600 is trading at 15.1 times projected earnings which is in fact, higher than the 10-year average of 12.1 times earnings.
On the other hand, the Dow Jones industrial average surged 900 points since early October; however, it crossed the 16,000-point threshold Monday. The Federal Reserve is going to release minutes of its October policy meeting today and the document is expected to reveal more details behind the decision to press on with $85 billion in monthly asset purchases.
Better Asian Market Today
China’s decision to open up its economy even more, investors are optimistic and amidst heavy buying Asian shares edged to a two-week high today. Investors are also optimistic as the Fed is not going to taper with its stimulus which has led to the dollar getting hobbled. India’s BSE is up today, it opened at 20,870.16 and trading at 20,887.64 at 2.20 PM ISM. Earlier it closed at 20,850.74, yesterday.
Some major gainers in Asian market include China Life Insurance Co. which rose 4.8 percent in Hong Kong. China’s biggest insurer got a boost after Citigroup Inc. named it as one of the beneficiaries of Communist Party policy measures.
Similarly, Samsung Electronics Co. gained 1 percent increase amidst the news that foreigners bought a net 246 billion won ($233 million) of stocks in South Korea’s benchmark Kospi index.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org