French political instability Bring European Stocks Down

Equity World – European stock markets closed lower on Monday’s trading (06/02) triggered investor concerns amid political instability in France and the US.

FTSE indices ended weaker 7172.15, down -16.15 points or -0.22%

The DAX ended weak 11509.84, down -141.65 points or -1.22%

CAC ended weak 4778.08, down -47.34 points or -0.98%

IBEX 35 index ended weaker 9357.30, down -105.40 points or -1.11%

The pan-European index Stoxx 600 ended 0.68 percent lower by almost all sectors and the major exchanges in negative territory.

The automotive sector was the worst performing sector on Monday, down more than 1.4 percent, despite previous data showing that car sales rose 2.9 percent in January in the UK, the highest level since 2005. Bank of America warned Monday that the profit margin could fall due Brexit and uncertainty over tax policy Trump.

The yield on French 10-year bonds surged to 17-month highs after rising political uncertainty over the result of the upcoming presidential election. Presidential candidate Francois Fillon told supporters he would continue to fight to overcome allegations of political scandal, on Monday. He has faced calls from within his own party to resign, but insisted that there was nothing she hide.

Basic resources sector edged lower on Monday after earnings news. Randgold Resources gold mining business ended up as one of the best players in the European benchmark, rose more than 4.1 percent after reporting a 76 percent increase in fourth-quarter profit. Glencore has been reported to extend the agreement with the Libyan state oil company to make sure it is the sole marketer for one-third of the current crude oil production in the country, Reuters reported.

The Swiss company DKSH closed 8.8 percent higher after reporting a 4.5 percent rise in full-year sales.

read Crude Oil Prices Down Distressed Strengthening Dollar | Equity World


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