20 години печелим заедно
European stocks continued their loosing streak with the action led by banking sector.
European stocks continued their loosing streak with the action led by banking sector. Catalyst of the risk aversion was the announcement of ECB President Mario Draghi that the Central bank will temporarily stop lending to some Greek banks to limit its risk. Draghi signaled the ECB won’t compromise on key principles to keep Greece in the euro area. On risk sentiment weighted also speculation for a Moody’s downgrade of Spanish banks after the European session.
Onе of the biggest spanish Bankс Bankia SA (BKIA) dropped 13,3% leading the losses in the broad European benchmark Stoxx 600 and dragged the Spanish IBEX 35 1% lower.
Deutsche Bank AG (DBK) and Commerzbank AG (CBK) Germany’s largest banks, erased about 1%, biggest European insurer Allianz AG (ALV) 2% dragging the major DAX lower at. The benchmark FTSE 100 Index slid 1 percent to 5,347.5 in London for its longest stretch of losses since November. Ressource companies and financials were the worst performers in the Index. Verdanta Ressources Plc (VED) lost 3,8%, Royal bank of Scotland Plc. (RBS) led the banks lower erasing 3,8%, Lloyds banking group Plc (LLOY) lost 3,2%, Barclays Plc. (BARC) 3,5%.
U.S. major indexes DJIA and S&P 500 posted declines for a fifth consecutive day as disappointing data for the manufacturing in the region of Philadelphia added to the concern about Europe. The Philadelphia Federal Reserve manufacturing index unexpectedly sank to -5.8 in May from 8.5 in April, marking the first negative reading since September.While unemployment claims stayed unchanged at 370 000, while analysts expected drop to 365 000. Nine out of 10 groups in the S&P 500 dropped sending the benchmark lower at 1,304.86 points. The DJIA retreated to 12,442.49 points. Hardly hit were cyclical companies such as Catepillar Inc. (CAT), which lost 4.4%.