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Fed prospects hurt stock markets; Stoxx 600 down 1.0%

January 27, 2014

European stocks fell early Monday, dragged by renewed recovery concerns that subdued the market amid expectations that Federal Reserve will curb stimulus at its first policy meeting of the year. Losses were evident across bourses in Europe with the start of the weekly trade this morning, following declines in Asia against the backdrop of the rout that took its toll on riskier assets, and particularly equities, after a report showed that China`s manufacturing activity dropped top for the first time in six months in January. Meanwhile, US stock futures are called to open higher on the day. As of 04:03 EST , the Stoxx Europe 600 fell 0.64% to 322.67. Most of the groups on the benchmark were down this morning, led by telecommunications, oil & gas and financials shares, respectively, but technology shares were less of causality in this rout, boosted by Ericsson's patent deal with Samsung. - Britain's FTSE 100 slumped 1.01% to 6,596.22 The UK was dragged the most this morning by the slump in telecom shares, with Vodafone PLC topping the losers after US telecom giant AT&T ruled out an imminent bid for the UK mobile operator. - France's CAC 40 fell 0.34% to 4,147.39 - Germany's DAX 30 fell 0.35% to 9,361.39 The German benchmark recovered some of the early losses amid hopes Europe`s biggest economy is moving in right track towards recovery, after data shwoed that business confidence rsumed its rally for a third straight month in January, according the Ifo institute on Monday. On the corprate front, US earnigns are on the watch again with results from Apple Inc pending to be released later on the day. The maker of iPad and iPhone is expected to post first-quarter profits, buoyed by holiday sales. The results will be published at 21:03 EST .

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Source: Financial Markets

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