EUROPE’S benchmark Stoxx 600 logged its third consecutive week of declines on Friday (Nov 8), hurt by underwhelming stimulus measures from China as well as concerns about tariffs under a Trump presidency hurting economic growth.
The pan-European Stoxx 600 closed down 0.6 per cent, with China-exposed sectors such as miners and luxury losing more than 3 per cent each. Most major subsectors were in the red barring defensive sectors such as real estate and healthcare.
China unveiled a 10 trillion yuan (S$1.85 trillion) debt package on Friday, disappointing investors who had speculated on a fiscal bazooka. Metal prices retreated in response, weighing on miners such as Rio Tinto and Glencore.
“The optimism seen on Wall Street has been entirely absent from the UK index, as heavyweight mining stocks shed ground after the National Policy Committee failed to unveil anything of note,” said Chris Beauchamp, chief market analyst at IG.
Richemont dropped 6.6 per cent after the Cartier jewellery brand owner reported a 1 per cent dip in sales during the three months to the end of September.
Most French luxury stocks fell, with LVMH losing 3.3 per cent and Kering shedding 8 per cent.
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The European benchmark logged weekly losses of 0.2 per cent, also as investors assessed the likelihood of tariffs after Donald Trump recaptured the US presidency with a sweeping victory earlier in the week.
“Most people ahead of the election said Trump is maybe good for the US, but it’s not good for the rest of the world, and it’s particularly not good for regions that depend on exporting to the US consumer, which is very much Europe,” said Guy Stear, head of developed markets strategy at Amundi.
Vistry slumped 15.5 per cent after Britain’s largest homebuilder by annual output issued its second full-year profit warning in a month.
British Airways-owner IAG jumped 7.2 per cent after its quarterly operating profit jumped 15 per cent, beating estimates.
Pirelli rose 2.8 per cent after the Italian tyre maker’s operating profit rose more than expected in the third quarter.
Meanwhile, Wall Street stood at record highs as the Trump rally continued, while the Federal Reserve cut interest rates by a quarter of a percentage point, as widely expected.
Dino Polska jumped about 14.2 per cent after the Polish food retailer’s third quarter results beat market expectations.
Serco Group tumbled 9.8 per cent after the British outsourcing company said it was unsuccessful in its bid to renew an immigration services contract with the Australian government. REUTERS
