London Stocks Close Marginally Higher

FTSE 100 ends a little over 0.1% higher at 5692.63, faring a lot better than its European counterparts, after the BOE announces a further GBP50B in asset purchases. GKN closes 13.1% ahead on its deal to buy Volvo Aero. Still, the overall move higher is pretty muted as investors digest rate cuts by the ECB and the PBOC. “Even though shares in London did have something of a post-lunch wobble, it’s testament to how positive sentiment is that much of these losses have been clawed back as the day has progressed,” says IG Index. Friday, UK PPI data are at 0830 GMT, but the main attraction will be US nonfarm payrolls at 1230 GMT.

Frankfurt Stocks Close Slightly Lower

DAX ends 0.4% lower at 6535.56, reversing earlier gains when ECB President Draghi indicated he is not aiming for an additional 3-year refinancing operation any time soon. “Draghi hasn’t provided any arguments for buying stocks,” says a trader. Notes the central banker said economic growth in the euro zone is weak, but this is no surprise. In individual stocks, there are losers across the sectors with Merck closing 2.3% lower after a failed drug trial, Commerzbank down 2.4% and Linde off 3%. Volkswagen ends 5.1% higher after the company says it will take the remaining 50% of Porsche it doesn’t already own.

Paris Stocks Close Firmly Lower

CAC-40 ends 1.2% lower at 3229.36 following comments by ECB President Draghi that the EU central bank is not immediately planning further unconventional measures to help ease tension on financial markets. “We were expecting [such] measures,” says a Paris-based trader. Veolia Environnement leads the fallers, down 5.8% after a UBS downgrade to sell. Vallourec is one of the few blue-chip stocks to end in positive territory, +4.1% after a Cheuvreux upgrade.

Zurich Stocks Finish Session Flat

SMI ends flat at 6202.32 as most European equity markets slip on worries about global growth prospects after the ECB cuts its main policy rate. Stocks end mixed, led by Actelion, +3.3%, while the day’s biggest loser is Adecco, losing 2.2% despite better-than-expected US jobs market data. Also down is Syngenta, ending 0.6% adrift after announcing plans to build a new seeds plant in Argentina. Financials are also mixed, with Credit Suisse gaining 0.1% and UBS losing 0.3%, while defensives like Nestle and Novartis are up 0.3%. SGS ends 0.6% higher after announcing an acquisition in Brazil. Friday, Swiss June CPI figures will be released.

Amsterdam Stocks Close Slightly Lower

Amsterdam stocks end lower, with investors showing disappointment about comments by ECB President Draghi after Thursday’s policy announcement by the EU central bank. The benchmark AEX ends 0.6% lower at 312.97, with Air France-KLM – which posted a 3.9% gain Wednesday – losing 3.8%. Index heavyweight ING loses 2.5%. Friday’s macroeconomic agenda includes German industrial production data at 1000 GMT, but the main focus will be US nonfarm payrolls at 1230 GMT

Nordic Markets Close Session Mixed

Nordic markets end mixed Thursday with Oslo’s OBX dragged lower by Statoil as the oil major says a strike could force it to halt much of its production. OBX is down 0.8% at 380.58 after a 1% fall in Statoil shares. OMXN40, meanwhile, closes 0.3% higher as monetary easing measures in the euro zone, China and the UK give the market a slight lift. In a quiet day locally for scheduled releases Friday.

Milan Stocks Close Firmly Lower

FTSE Mib ends 2% lower at 14,088.7, on a day in which ECB President Draghi’s comments disappoint investors and push the index down, particularly financial stocks which fall deep into the red. “Investors have implmented a strategy typically used when expectations for monetary policy moves are in the air: ‘Buy the rumor, sell the fact,” says Antonio Tognoli, executive vice president at financial consultant Integrae. Italian banks take big hits, with UniCredit down 5.1%, UBI Banca off 4.8%, and Intesa Sanpaolo and Banca Monte dei Paschi both 4.4% lower. On the upside, Finmeccanica gains 2.2%.

Madrid Stocks Close Session With 3% Loss

IBEX-35 closes 3% lower at 6954.20, its biggest daily fall since June 25, as disappointment over Thursday’s ECB announcement fuels concern about Spain’s plan to use EUR100B in EU aid for its banks. BBVA, which will float more shares in exchange for convertible bonds Friday, falls 4.8%, while Santander ends down 3.9%. The selloff stretcheds across other industries, after ECB President Draghi fails to offer hope for more aggressive monetary stimulus to support the economy. Inditex ends the day with a 1.7% loss, while Acciona sheds 3.7%. DIA, one of only two stocks to post gains, adds 0.7%.

Athens Stocks End Firmly Lower; Banks Weigh

ASE ends 2% lower at 637.05, in turnover of around EUR37M, below average but a slightly better volume than the past three days, says a local trader. Says defensive stocks are strong, on good volumes. Overall, though, activity is limited and banks are under the cosh. Alpha Bank ends down 6.4%, EFG Eurobank off 5.1%, National Bank 4.1% lower. The trader adds that everything that’s been affecting core European markets – namely, the ECB, BOE and PBOC moves – has had no impact on Athens. PM Antonis Samaras has said Greece will do its best to speed up the pace of structural reforms, after the finance minister’s admission that the bailout program has partially drifted off course.

StockMarketNews Research Team