Whereas there was little change in the European stocks, in today’s trade, Chinese stocks are lower, the trend has continued from the last four days. Earlier in yesterday’s trading, European stocks were not able to gain momentum as investors are still at a precarious condition as they are not clear about the stimulus on the part of the U.S. Federal reserve. Expectations are the Fed may taper the quantum of its stimulus from the next month.
In the European stocks, PSA Peugeot (UG) Citroen came as the major loser as its shares slumped 6.1 percent. This happened after the statement came from General Motors Co. that it is selling its entire stake in the French carmaker. Another major loser was Iberdrola SA which lost 0.8 percent after Goldman Sachs Group Inc. recommended selling shares in Spain’s biggest utility.
Major Indexes in Europe Fall
Indexes were lower in Europe trading as the Stoxx 600 dropped 0.1 percent to 310.02 at 8:05 a.m. in London. A similar trend was seen in the regional benchmark which retreated 2.1 percent; a major reason behind the fall is attributed to the fact that many investors are still waiting for the Fed’s reaction after positive employment data.
According to investors, if the Fed comes up with reduced stimulus, it could slow the economy. On a dismal trading day, Standard & Poor’s 500 Index futures gained 0.2 percent; however, the MSCI Asia Pacific Index slid 0.4 percent as the major indices look set to record another weekly close lower before the beginning of the weekend trading.
Asian Regional Market Lower Today
In today’s trading China’s benchmark stock index fell for a fourth day. The major losers in Chinese market are China Oilfield Services Ltd. and ZTE Corp. which faced a decline of around 1 percent. However, there was a respite for Cosco Shipping Co., a unit of the biggest shipping group. The company advanced 1.3 percent after it recorded positive outlooks as the commodity shipping rates increased to some extent.
Whereas the Shanghai Composite Index (SHCOMP) was on losing streak and dropped 0.3 percent to 2,196.08 at the close; though, close to 475 stocks rose, it was worsened by 424 stocks that fell flat and that led to slump in the index. So far, there is 1.8 percent fall this week amid concern the government will cut its 2014 growth target to 7 percent from 7.5 percent this year.
To contact the reporter of this story: Jonathan Millet at email@example.com