Snapping a four-day winning streak on Thursday, a slew of European stock indices had winded down the day broadly lower with London’s FTSE 100 leading the tallies of the losses, as a stronger British currency alongside ex-dividend trading had tottered London Stock Exchange which eventually had weighed down other stock indices in the eurozone.
In point of fact, apart from an unprecedented weakness in the London Stock Exchange, market participants’ move to sell-off financial and energy stocks which had outperformed throughout the week amid a mixed bag of earnings’ reports, had also taken a heftier toll on major European stock indices.
European shares end lower as strong Pound Sterling hurt British stocks
Aside from that, currency-oriented London Stock Exchange had pummelled following a sharp upswing of the British currency, while a number of heavyweight stocks such as pandemic vaccine manufacturer AstraZeneca, BP Plc.
alongside GSK had taken heavy headers as they had been trading without entitlement to a dividend payment. In tandem, Thursday’s European market had witnessed a sharp reversal of prior trend to purchase stocks which had been more resilient to the pandemic outbreak, while the regional pan-European STOXX 600 ended the day 0.6 per cent lower with London’s FTSE 100 falling 1.5 per cent.
Aside from that, cyclical stocks such as banks, energy, miners and automakers, which had overperformed this week, had tumbled between 0.8 per cent to 1.9 per cent.
Citing statistics, on Thursday’s European market closure, key indices had wrapped the day broadly lower with London’s FTSE 100 losing 1.50 per cent to 6,185.62, while the French CAC 40 fell 0.61 per cent to 5,042.38 and Frankfurt’s DAX dwindled 0.50 per cent to 12,993.71.
Elsewhere in the Europe, Italy’s FTSE MIB faltered 0.88 per cent to 20,257.31, while Madrid’s benchmark IBEX 35 shed 0.62 per cent to wrap up the day at 7,250.50.
Meanwhile, adding that it could be difficult to gauge whether the recent gains in European stocks would sustain, a head of global equities international at Federal Homes, Geir Lode said on the day’s session closure, “It reflects the uncertainty that still pervades the world as we continue to negotiate our way back to normality as well as increasing U.S.-China tensions”.