European Stocks Sag Down After Surge; Sainsbury Decline
March 18, 2014 8:58 am
European stocks slide lower, after recording the largest increase in two weeks, as Federal Reserve officials starts a two-day assembly to finalize on stimulus policy. U.S. index futures were slightly altered, while Asian shares soared higher.
Scania AB relinquished 3.5 percent after a board committee recommended turning down Volkswagen AG’s takeover offer. J Sainsbury Plc downgraded 0.9 percent after the U.K.’s third-biggest grocer reported the first decline in similar-store sales in more than nine years. Kuoni Reisen Holding AG increased 3.1 percent after Switzerland’s largest travel firm logged 2013 earnings that surpassed analysts’ projections.
The Stoxx Europe 600 Index gave up 0.2 percent to 325.18 at 8:08 a.m. in London. Standard & Poor’s 500 Index futures inched down 0.1 percent, while the MSCI Asia Pacific Index spiked 0.5 percent higher.
The Fed will possibly dismiss its 6.5 percent unemployment rate threshold to adopt qualitative guidance for signaling when it will consider boosting the standard interest rate, economists said in a survey. Payrolls increased more than estimated last month and jobless rate downgraded to 6.7 percent from 7 percent in November.
The Federal Open Market Committee will also declare a $10 billion trim down in monthly bond purchasing to $55 billion and continue slash downs at that pace at every meeting before declaring an end to the program at its October 28-29 gathering, according to the median of responses in the survey.
A Commerce Department report at 8:30 a.m. Washington time may show that housing starts bounced back in February. Builders start to work on 910,000 homes at an annualized rate, following the largest decline since February 2011, according to the median economist projection in a Bloomberg News survey.
German Confidence
A report at 11 a.m. Frankfurt time will possibly show that German investor confidence slide lower for a third month in March. The ZEW Center for European Economic Research’s index of investor and analyst assumptions, which aims to guesstimate economic progress six months in advance, plummeted to 52 from 55.7 in February, according to economists surveyed by Bloomberg News.
Germany’s highest court will rule on problems on the European Stability Mechanism today, including how much say the country’s lawmakers must have in the ESM. The court gave preliminary approval to the legality of the 500 billion-euro ($695 billion) ESM in September 2012 and cleared the way for a fiscal pact.
Crimea Stand Off
President Vladimir Putin said he acknowledged a request from Ukraine’s Crimean region to join Russia. He will address lawmakers and regional leaders at 3 p.m. in Moscow. Crimea voted on March 16 to join Russia, and Russia should inked a treaty accepting the peninsula’s accession, according to an order signed by Putin and shown on a government website today. The U.S. and European Union imposed penalties on Russian officials and threatened further actions.
Scania depreciated 3.5 percent to 189 kronor. A board committee reviewing Volkswagen’s takeover offer declared that the bid was too low. The German firm offered 6.7 billion euros for the Swedish truckmaker’s stock it doesn’t already own. The 200 krona-a-share bid is 36 percent greater than Scania’s closing financial worth on February 21, when Volkswagen declared its plan for a full takeover. Volkswagen missed 0.2 percent to 180 euros.
Sainsbury gave up 0.9 percent to 308.6 pence. Sales at stores open at least a year slide 3.1 percent lower, excluding fuel, in the 10 weeks ended March 15, the firm said. The median analyst estimate in a Bloomberg News survey was for a 2.7 percent decline.
Kuoni soared 3.1 percent to 378 Swiss francs. The firm declared 2013 profits before interest and taxes rallied to 154.2 million francs ($176.7 million), more than the 142.3 million francs analysts had estimated. Kuoni added it plans to boost its dividend payout ratio to 40 percent to 45 percent from 30 percent to 35 percent.
The material has been provided by InstaForex Company – www.instaforex.com
European stocks slide lower, after recording the largest increase in two weeks, as Federal Reserve officials starts a two-day assembly to finalize on stimulus policy. U.S. index futures were slightly altered, while Asian shares soared higher.
Scania AB relinquished 3.5 percent after a board committee recommended turning down Volkswagen AG’s takeover offer. J Sainsbury Plc downgraded 0.9 percent after the U.K.’s third-biggest grocer reported the first decline in similar-store sales in more than nine years. Kuoni Reisen Holding AG increased 3.1 percent after Switzerland’s largest travel firm logged 2013 earnings that surpassed analysts’ projections.
The Stoxx Europe 600 Index gave up 0.2 percent to 325.18 at 8:08 a.m. in London. Standard & Poor’s 500 Index futures inched down 0.1 percent, while the MSCI Asia Pacific Index spiked 0.5 percent higher.
The Fed will possibly dismiss its 6.5 percent unemployment rate threshold to adopt qualitative guidance for signaling when it will consider boosting the standard interest rate, economists said in a survey. Payrolls increased more than estimated last month and jobless rate downgraded to 6.7 percent from 7 percent in November.
The Federal Open Market Committee will also declare a $10 billion trim down in monthly bond purchasing to $55 billion and continue slash downs at that pace at every meeting before declaring an end to the program at its October 28-29 gathering, according to the median of responses in the survey.
A Commerce Department report at 8:30 a.m. Washington time may show that housing starts bounced back in February. Builders start to work on 910,000 homes at an annualized rate, following the largest decline since February 2011, according to the median economist projection in a Bloomberg News survey.
German Confidence
A report at 11 a.m. Frankfurt time will possibly show that German investor confidence slide lower for a third month in March. The ZEW Center for European Economic Research’s index of investor and analyst assumptions, which aims to guesstimate economic progress six months in advance, plummeted to 52 from 55.7 in February, according to economists surveyed by Bloomberg News.
Germany’s highest court will rule on problems on the European Stability Mechanism today, including how much say the country’s lawmakers must have in the ESM. The court gave preliminary approval to the legality of the 500 billion-euro ($695 billion) ESM in September 2012 and cleared the way for a fiscal pact.
Crimea Stand Off
President Vladimir Putin said he acknowledged a request from Ukraine’s Crimean region to join Russia. He will address lawmakers and regional leaders at 3 p.m. in Moscow. Crimea voted on March 16 to join Russia, and Russia should inked a treaty accepting the peninsula’s accession, according to an order signed by Putin and shown on a government website today. The U.S. and European Union imposed penalties on Russian officials and threatened further actions.
Scania depreciated 3.5 percent to 189 kronor. A board committee reviewing Volkswagen’s takeover offer declared that the bid was too low. The German firm offered 6.7 billion euros for the Swedish truckmaker’s stock it doesn’t already own. The 200 krona-a-share bid is 36 percent greater than Scania’s closing financial worth on February 21, when Volkswagen declared its plan for a full takeover. Volkswagen missed 0.2 percent to 180 euros.
Sainsbury gave up 0.9 percent to 308.6 pence. Sales at stores open at least a year slide 3.1 percent lower, excluding fuel, in the 10 weeks ended March 15, the firm said. The median analyst estimate in a Bloomberg News survey was for a 2.7 percent decline.
Kuoni soared 3.1 percent to 378 Swiss francs. The firm declared 2013 profits before interest and taxes rallied to 154.2 million francs ($176.7 million), more than the 142.3 million francs analysts had estimated. Kuoni added it plans to boost its dividend payout ratio to 40 percent to 45 percent from 30 percent to 35 percent.
The material has been provided by InstaForex Company – www.instaforex.com
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