European bourses break off four-day winning run as bank stocks sapped

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European bourses break off four-day winning run as bank stocks sapped

On Thursday, a bundle European bourse had rounded off the day sharply lower, snapping a four-day long rally, as financial stocks including big-league lenders appeared to be struggling to offset the impacts of a likely near-zero interest rate for a prolonged period, while a mass-scale slump of tech stocks in the Wall St.

had been hoarding pressures on European tech stocks. In point of fact, as uncertainties were looming large over a pandemic resurgence in Europe, shattering investors’ morale of a quicker fiscal recovery, the regional pan-European STOXX 600 had wrapped up the day 0.5 per cent lower, coming off a one-month high hit in the previous session, while London’s FTSE 100 took comfort against the day’s market trend, as a BoE (Bank of England) remark that said it was eyeing a negative interest rate for the first time at its 326 years of history on record, had pummelled the British currency and aided in the causes of the export-oriented British stocks.

However, the blue-chip index of London Stock Exchange ended the day 0.5 per cent lower, mostly weighed down by the losses of HSBC, Barclays and Standard Chartered.

European stocks end lower as financials drag

Citing statistics, on Thursday’s European market closure, London’s FTSE 100 shed 0.47 per cent to 6,049.92 and French CAC 40 had curbed out 0.69 per cent, while Frankfurt’s DAX dwindled 0.36 per cent to 13,208.12.

Elsewhere in the Europe, Italy’s FTSE MIB muddled 1.12 per cent to 19,739.73, while Madrid’s benchmark IBEX 35 lost 0.35 per cent to 7,086.20. In tandem, addressing to a global-scale easing of monetary policy from a number of major Central Banks across the world, an investment Director at AJ Bell, Russ Mould wrote in a client note, “Given the margin-crushing powers of zero-interest-rate and Quantitative Easing policies, it is no wonder bank shares are performing terribly.