Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European stocks flat as banks falls offset travel and leisure gains

EconomyMay 26, 2021 17:11
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 25, 2021. REUTERS/Staff

By Sruthi Shankar and Shreyashi Sanyal

(Reuters) -European stocks ended flat on Wednesday, led by bank shares after central bank policymakers pledged to keep monetary policy loose despite recent signs of an uptick in inflation.

The pan-European STOXX 600 index was flat, with bank falls offsetting travel and leisure gains.

Stocks drifted higher earlier, holding near record highs after U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance.

Similar comments from European Central Bank policymakers, including that it may be too early to discuss tapering of emergency bond purchases, helped equity markets in the region stabilize.

But banking stocks came under pressure as a result.

"Investors appear to be fairly content with the outlook for policy, and inflation concerns have certainly receded for the time being," said Chris Beauchamp, Chief Market Analyst at IG.

"This will mean that further gains in bank stocks based off hopes of rising yields will be cancelled out for the time being, resulting in banks joining in the list of stocks that have struggled to find a catalyst to keep rising," he added.

The STOXX 600 hit a record high on Tuesday, after rising almost 12% this year, helped by strong earnings and optimism over re-opening of economies as COVID-19 vaccinations pick up.

"We've been very risk on for the start of 2021, and we've taken quite a bit of cyclicality off our asset allocation simply because we're missing the next big catalyst on the macro side," said Max Kettner, multi-asset strategist at HSBC Global Research.

European stocks are set to hold around or inch just above current record levels, with a Reuters poll of strategists predicting the STOXX 600 would reach 451 points by year end, just 1.3% above Monday's close.

British retailer Marks & Spencer jumped 8.5% to a one-year high after it said it had traded well in the early weeks of the 2021-22 and that earnings would recover after an 88% slump in full-year profit.

French food firm Danone slipped 1.8% after Berenberg downgraded the stock to "sell", citing the hard-to-fix low-growth nature of most of its businesses.

Spire Healthcare jumped 26.9% after Australia's Ramsay Health Care said it would buy the British hospital operator for 1 billion pounds ($1.42 billion).

European stocks flat as banks falls offset travel and leisure gains
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email