European indices traded flat as investors are cautious on the eve of today’s speech byJanet Yellen, which may contain clues regarding monetary policy prospects.
A slight effect on the dynamics of trade had data on the euro zone and Britain. The report, published by the ECB showed that money supply growth in the euro area slowed down moderately in July, exceeding the estimates, while the annual growth of private sector credit growth remained unchanged, and in line with forecasts. According to the data, the monetary aggregate M3 increased in July by 4.8 percent year on year, which was slower than the increase of 5.0 percent in June. Forecasts indicated growth to slow to 4.9 percent. On average over the past three months to JulyM3 growth was 4.9 percent. In addition, it was reported that the total lending to the private sector increased by 1.4 percent compared to 1.5 percent in June. Lending to households increased by 1.8 percent, in line with the change from the previous month and the estimates of experts. At the same time, non-financial corporate loan growth accelerated to 1.9 percent from 1.7 percent in June.
Revised data published by the ONS showed that in the second quarter UK GDP grew by 0.6 percent relative to the previous three-month period and increased by 2.2 percent in annual terms. The last change was in line with the preliminary readings and forecasts. Household spending rose in the 2nd quarter by 0.9 percent compared to the first three months of 2016. In annual terms, the increase in household expenditure (+3.0 percent) was the strongest since the end of 2007. Business investment rose by 0.5 percent q/q, despite the predicted fall. This change helped offset the decline in the first three months of this year. On an annual basis, business investment fell by 0.8 per cent, which corresponds to a change in the 1st quarter.
The composite index of Europe’s largest enterprises in Europe Stoxx 600 fell 0.1 percent, reducing its weekly gain to 0.5 percent. Since the beginning of 2016 the index lost 6.6 percent, which was mainly due to the fall of the banking sector shares. The trading volume today is about 38 percent lower than the average of 30 days.
FTSE MIB index fell 0.5 percent, leading the decline among the markets in the region.
Shares of UniCredit SpA, Banca Popolare di Milanoand Banco Popolare SC fell more than 2 percent. Vivendi SA shares- a French media company – fell 5 percent after it became known that the volume of quarterly earnings did not meet analysts’ estimates.
The cost of Hennes & Mauritz AB fell 2.2 percent as HSBC Holdings Plc downgraded shares of the companies to “hold.”
At the moment:
FTSE 100 -0.85 6817.75 -0.01
DAX -23.36 10506.23 -0.22
CAC 40 -5.23 4401.38 -0.12