EUROPE MARKETS: European Stocks Pull Lower After Post-Brexit Surge
30 June 2016 - 7:22PM
Dow Jones News
By Carla Mozee, MarketWatch
Deutsche Bank, Santander shares fall after U.S. stress test
European stocks edged down Thursday, with Deutsche Bank AG and
Banco Santander SA shares under pressure, a day after equities
rallied as Brexit-related worries appeared to ebb.
The Stoxx Europe 600 slipped 0.1% to 326.09. Health care,
financial and telecommunications shares were lower, but gains for
basic materials, technology and industrial shares limited the
overall decline.
European stocks on Wednesday surged 3.1%
(http://www.marketwatch.com/story/european-stocks-rise-again-as-risk-appetite-returns-after-brexit-vote-2016-06-29),
marking a second straight day of sharp gains after a two-session
rout in the wake of the U.K.'s vote to leave the European
Union.
The pan-European index was still on course for a monthly loss of
6.2%, which would be the worst monthly performance since
January.
Investors on Thursday will keep tabs on the jockeying among
Conservative Party members who are seeking to become the new leader
of the party and replace Prime Minister David Cameron. Cameron, who
wanted the U.K. to stay in the EU, last week said he's
resigning.
At 4 p.m. London time, or 11 a.m. Eastern Time, Bank of England
Governor Mark Carney will deliver a monetary policy update in wake
of the Brexit vote.
Banks: Shares of German lender Deutsche Bank AG (DBK.XE) and
Spain's Banco Santander (SAN) fell 3.7% and 2.4%, respectively. The
U.S. arm of Santander and parts of Deutsche Bank failed the Federal
Reserve's stress test
(http://www.marketwatch.com/story/most-banks-get-fed-clearance-to-lift-dividends-and-stock-buybacks-2016-06-29)of
financial institutions on what were called "qualitative"
concerns.
The Fed said it found "broad and substantial weaknesses across
their capital planning processes, and insufficient progress these
firms have made toward correcting those weaknesses and meeting
supervisory expectations."
Deutsche Bank didn't pass the Fed test last year, and Santander
has failed for the two years prior, though the central bank did say
both had made progress.
Separately, the International Monetary Fund said Thursday that
Deutsche Bank is the riskiest financial institution in the world as
a potential source of external shocks to the financial system
(http://www.marketwatch.com/story/deutsche-bank-poses-greatest-risk-to-system-imf-2016-06-30).
Indexes: Germany's DAX 30 gained 0.1% to 9,619.89, and France's
CAC 40 rose 0.2% to 4,203.64.
Italy's FTSE MIB fell 1.2% to 15,749.24, while Spain's IBEX 35
lost 0.5% to 8,066.40.
The U.K's FTSE 100 shed 0.2% to 6,349.91
(http://www.marketwatch.com/story/ftse-100-eases-back-after-returning-to-pre-brexit-level-2016-06-30).
The index on Wednesday erased the losses it suffered after the
Brexit vote.
In currencies, the euro fetched $1.1119, compared with $1.1106
late Wednesday. The pound was buying $1.3466 after changing hands
at $1.3436 late Wednesday in New York.
(END) Dow Jones Newswires
June 30, 2016 05:07 ET (09:07 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024