-
Tips for becoming a good boxer - November 6, 2020
-
7 expert tips for making your hens night a memorable one - November 6, 2020
-
5 reasons to host your Christmas party on a cruise boat - November 6, 2020
-
What to do when you’re charged with a crime - November 6, 2020
-
Should you get one or multiple dogs? Here’s all you need to know - November 3, 2020
-
A Guide: How to Build Your Very Own Magic Mirror - February 14, 2019
-
Our Top Inspirational Baseball Stars - November 24, 2018
-
Five Tech Tools That Will Help You Turn Your Blog into a Business - November 24, 2018
-
How to Indulge on Vacation without Expanding Your Waist - November 9, 2018
-
5 Strategies for Businesses to Appeal to Today’s Increasingly Mobile-Crazed Customers - November 9, 2018
European blue-chip index drops Deutsche Bank, Credit Suisse
European banking stocks are taking a hammering once again on Tuesday as Friday’s stress tests continue to weigh heavily on the minds of investors in Europe’s financial sector.
Advertisement
Shares in Italin bank UniCredit were suspended from trading for a second time after falling 5.11 per cent. UniCredit plans to work with regulators to assess possible actions after industry stress tests showed its core capital under adverse conditions fell close to the 7 per cent level at which junior bonds typically converts into equity of get written down. The drop in sterling has helped boost export orders but this was more than offset by a weaker production and domestic orders.
“It appears post-Brexit fears amongst manufacturers were not just a flash in the pan”.
But UniCredit shares fell sharply, even triggering a temporary suspension, before closing 9.4 percent down at 1.986 euros.
Commerzbank fell 7 percent, the worst performer on the index, after warning that its earnings would fall this year.
Shares in troubled Italian bank Monte dei Paschi di Siena rose Monday as a capital infusion means the bank won’t be nationalized.
Monte dei Paschi was working with Italian investment bank Mediobanca (MDBI.MI) to set up a platform to manage its portfolio and bring in a partner to improve collections.
Shares and currencies in emerging markets rallied to the highest in about a year, while miners and industrial metals jumped.
However, many market participants dismissed the European stress-test results, suggesting they weren’t severe enough.
Shanghai stocks lost 0.9 percent after China’s official purchasing managers’ index of manufacturing activity indicated the sector shrank last month.
The data is the latest bad news on the world’s number two economy, which is growing at its slowest pace in a quarter of a century. Usually changes to the index are only made once a year.
Advertisement
Traders are meanwhile expecting Japanese Prime Minister Shinzo Abe to outline Tuesday details of the government’s 28 trillion yen stimulus.