Market news
26.07.2016, 10:55

Major stock indices in Europe trading mixed

European stocks traded without significant dynamic, since the rise in price of commodity producers offset by a decrease in shares of banks and energy companies.

Little influence had statements by the of the Bank of England Martin Weale. Noted that he assesses the economic outlook different now after the publication of extremely weak data on business activity in the services sector. Recall a week before the release of this report Weale said that he needed more evidence to consider lowering interest rates. He will not give a clear answer to the question whether he would support a rate cut at the next BoE meeting on 4 August. It should be emphasized, it will be the second meeting of the Central Bank after Britain voted in favor of withdrawal from the EU. The Bank of England surprised markets in July, leaving interest rates unchanged, but the minutes of the meeting showed that most politicians are expected to support the launch of additional measures to stimulate the economy in August. "The Bank of England during the August meeting may announce new stimulus package, which may include the purchase of corporate bonds the central bank has in the secondary market of corporate bonds purchase scheme which was not used in 2013, "- noted Natixis Asset Management.

Investors are also awaiting the Federal Reserve and Bank of Japan meetings. Given the recent data on the US, as well as statements by the Fed, interest rates this year may be increased for at least one more time, but this is unlikely to happen at the July meeting. Futures on the federal funds assess the probability of a rate hike in July to 1.2%. Meanwhile, the chances for a hike in December are 43%. Reuters latest survey found that just over half of the 100 economists expect the Fed to raise interest rates in the 4th quarter to . The change rate is likely to occur in December.

The composite index of Europe's largest enterprises Stoxx 600 fell 0.2 percent.

Shares of Rio Tinto Group and BHP Billiton Ltd. increased by at least 1.8 percent.

Shares of Commerzbank AG fell 4.9 percent after one of the key indicators of the strength of the capital fell in the second quarter.

The cost of BP Plc fell 2.2 percent amid the reduction in quarterly profit.

Orange SA capitalization fell by 3.8 percent, despite the fact that the rate of decline in revenues and quarterly earnings in line with estimates.

Faurecia shares rose 3.8 percent, as the company has improved its target for 2016.

AMS AG Cost increased by 5.7 per cent after the company reported for the production of semiconductors a higher amount of gains than expected.

At the moment:

FTSE 100 +8.81 6718.94 + 0.13%

DAX -3.94 10194.30 -0.04%

CAC 40 4368.70 -19.30 -0.44%

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