Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Banks

Carney: UK is ‘investment banker for Europe’

The governor of the Bank of England has repeated his calls for a “smooth and orderly” UK exit from the EU, saying that a transition out of the bloc will happen, it was just a case of “when and how”. Responding to the BoE’s latest bank stress tests, where lenders overall emerged with more resilient […]

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Currencies

China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

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Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Banks

Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Categorized | Equities

Banks lead falls after Spanish downgrades


Posted on April 30, 2012

Share prices across Europe fell yesterday, reversing gains last week, after Spain slid into recession.

“This is a rolling crisis that goes up and down. Markets were generally up last week and they are down this week,” Karen Olney, strategist at UBS, said.

    The FTSE Eurofirst 300 index inched down 0.8 per cent to 1,043.28.

    In Madrid, the Ibex 35 tumbled 1.9 per cent to 7,011 after the government released first-quarter data revealing the Spanish economy contracted 0.3 per cent from the previous quarter.

    Banks led the decline as Standard & Poor’s downgraded 11 of Spain’s largest banks.

    Banco Santander
    , Europe’s largest bank by market capitalisation, shed 2.5 per cent to end at €4.72, while shares in BBVA
    fell 2.2 per cent to €5.11.

    In Paris, the CAC 40 slipped 1.6 per cent to 3,212.80 with tech companies leading the decline.

    STMicroelectronics
    , the parent company of ST-Ericsson, fell 5 per cent to €4.29 after Moody’s changed its outlook for the company to negative, affirming its Baa1 rating.

    In Frankfurt, the Xetra Dax fell 0.6 per cent to 6,761.19 despite gains for Adidas
    .

    The German sports goods group’s shares climbed to a record after it raised its profit forecast on strong performance in China.

    The shares jumped nearly 5.3 per cent to close at an all-time high of €63, as the company announced better than expected first-quarter results, with revenues up 17 per cent to €3.8bn.

    Retailer Metro
    ’s shares also rose 2.6 per cent to €24.38.

    However, shares in BASF
    , the world’s biggest chemical maker, fell sharply, down 4.7 per cent to €62.19.

    ABB
    dropped after ING cut its price target for the company’s share price from SFr20 to SFr19. The Swiss electrical engineering group fell 3.8 per cent to SFr16.54.

    Telenor
    was among Europe’s biggest gainers as shares rose 5.2 per cent to NKr105.2 after the Norwegian telecoms company said it had written down the rest of its NKr3.9bn business in India.

    This is the second writedown Telenor has made since India’s Supreme Court revoked its mobile licence in India.