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European stocks extend pullback

FXStreet (Córdoba) - European stocks retreated further Tuesday as investors weighed companies performance, Scottish independence referendum and central bank stimulus.

The Stoxx Europe 600 fell 0.10% to 345.76. The index lost 0.4% Monday as a poll indicated for the first time that a majority of voters in Scotland favored independence from the UK. The Stoxx Europe 600 is moving away from a 6-year high reached last week as the European Central Bank unexpectedly cut all three of its main interest rates and announced an asset buying program.

As for country-specific indexes the UK FTSE dropped 0.19%. The Germany’s DAX 30 was down 0.12% while the France’s CAC 40 shed 0.09%. Spain’s Ibex 35 fell 0.69% while Italy’s FTSE MIB rose 0.06% helped by Telecom Italia gains.

In the FX market, the dollar has extended gains versus major rivals. EUR/USD hit a fresh 14-month low of 1.2859 while USD/JPY reached its highest in 6 years at 106.38. GBP/USD broke below 1.6100 and printed a 10-month low of 1.6063 before recovering slightly.

Adding to market caution and dollar strength was a San Francisco Fed study suggesting that low volatility across financial markets may signal investors are underestimating how quickly US interest rates will rise.

As for commodities, gold was little changed near 3-month lows at $1,256 an ounce, while crude oil rose 0.59% to $93.21 a barrel.

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