Shares in Europe dropped sharply in the course of Thursday’s session, fueled by anticipations for a June rate hike by the Fed, which currently weighed in on the global equity markets, citing lower oil prices affecting the energy sector.
The EURO STOXX 50 dropped by about 0.96% amid European session, followed by France’s CAC 40, which has seen declines of 0.83%, while Germany’s DAX slid 1.19%.
Equity markets were hurt after the minutes of the April 26-27 meeting of the Fed directed “most” of the members of the central bank are expecting a raise in interest rates which will proceed in early June.
Meanwhile, oil prices plunge after Wednesday’s data have shown a surprising increase in the U.S. stockpiles last week.
Energy-related stocks dropped sharply, led by declines on French oil and gas major Total SA, which tumbled by 1.49% and ENI decreased 1.76%, while Norwegian rival Statoil ASA lost 1.45%.
Financial stocks also struggled, as French lenders Societe Generale lost 0.21%, and BNP Paribas dropped by about 0.49%, while Deutsche Bank has seen decreasing by 0.21% and Commerzbank plunge 0.31%.
Peripheral lenders, on the other hand, surges. Italy’s Unicredit rallied by about 0.21% and Intesa Sanpaolo increased 0.81%. Spanish banks BBVA added 0.63%, while Banco Santander rose 0.70%.
Subsequently, Henkel AG A rose 1.08% after the German group reaffirmed guidance for this year and issued an increase of 6.2% in the first quarter earnings.
Technip added 13.44% after the French engineering firm issued an all-stock merger, along with their U.S. competitor FMC Technologies.
London’s commodity-heavy FTSE 100 decreased 1.25%, fueled by significant declines in the mining sector.
Conversely, Rio Tinto shares lost 3.96% and Glencore has seen declines of 4.04%. Anglo American slid 4.55%, while Fresnillo dropped by about 5.59%.
Thomas Cook Group Plc added weighty losses, with stocks dropping by about 17.21% after announcing 5% decline in the bookings for the summer.
Shares of Royal Mail lost 2.64% after reporting a 1% increase in revenue for the 52-weeks ending on the 27th of March.
Apparently, financial stocks remained higher, Lloyds Banking shares gained 0.73% and the Royal Bank of Scotland added 0.76%, while Barclays rose 1.41%. Elsewhere, HSBC Holdings has an underperformed rating, with shares dropping by about 0.34%.
Equity markets in the U.S. dropped at the opening bell, citing 0.32% decline on the Dow Jones Industrial futures, S&P 500 futures lost 0.31%, while the Nasdaq 100 futures have seen a 0.26% loss.
Meanwhile, shares in Europe declined at the opening bell, boosted by talks on Fed’s rate hike. Dax lost 1.19%.
Read updated and broad coverage of the latest news on forex, commodities, individual stocks, stock indices, as well as the world economy. Subscribe to our FSM News daily newsletter to receive reliable updates every day.