European equities ease off of multi-year highs
After posting a more than five-year high yesterday, the European equity markets are seeing some pressure in late-day action, with traders grappling with valuation concerns in the region as well as the lingering uncertainty regarding when the U.S. Federal Reserve may begin to rein in its stimulus measures. Moreover, sentiment may be being further depressed by a reduced global growth outlook for this year and next from the Organization for Economic Cooperation and Development (OECD), citing the slowing of emerging market economies. Meanwhile, the pullback in the region comes despite an upbeat reading on German investor sentiment. The German ZEW survey of analyst investor confidence, designed to forecast economic developments six months from now, improved to 54.6 in November, from 52.8 in October, and compared to the 54.0 reading that economists had projected. This was the highest level for the index since October 2009. Additionally, the losses for stocks in the region come even as shares of easyJet Plc. (ESYJY $81) are rallying after Europe's second-largest discount air carrier, per Bloomberg, posted a 50% jump in profits and announced a special dividend. In other economic news, eurozone construction output fell in September, while growth in Italian industrial orders decelerated for September.
Source: Schwab
The UK FTSE 100 Index is down 0.3%, France's CAC-40 Index is declining 1.0%, Germany's DAX Index is decreasing 0.2%, Italy's FTSE MIB Index is falling 1.2%, Spain's IBEX 35 Index is dropping 1.1%, and Switzerland's Swiss Market Index is trading 0.5% lower.
After posting a more than five-year high yesterday, the European equity markets are seeing some pressure in late-day action, with traders grappling with valuation concerns in the region as well as the lingering uncertainty regarding when the U.S. Federal Reserve may begin to rein in its stimulus measures. Moreover, sentiment may be being further depressed by a reduced global growth outlook for this year and next from the Organization for Economic Cooperation and Development (OECD), citing the slowing of emerging market economies. Meanwhile, the pullback in the region comes despite an upbeat reading on German investor sentiment. The German ZEW survey of analyst investor confidence, designed to forecast economic developments six months from now, improved to 54.6 in November, from 52.8 in October, and compared to the 54.0 reading that economists had projected. This was the highest level for the index since October 2009. Additionally, the losses for stocks in the region come even as shares of easyJet Plc. (ESYJY $81) are rallying after Europe's second-largest discount air carrier, per Bloomberg, posted a 50% jump in profits and announced a special dividend. In other economic news, eurozone construction output fell in September, while growth in Italian industrial orders decelerated for September.
Source: Schwab
The UK FTSE 100 Index is down 0.3%, France's CAC-40 Index is declining 1.0%, Germany's DAX Index is decreasing 0.2%, Italy's FTSE MIB Index is falling 1.2%, Spain's IBEX 35 Index is dropping 1.1%, and Switzerland's Swiss Market Index is trading 0.5% lower.
