(MENAFN– ecpulse)
European shares traded lower on Wednesday, falling from the highest level in six years as traders weighed prospects for China`s faltering recovery.
Sentiment in the global bourses is still hammered by concerns over the world`s second largest economy, with the Asian property shares suffering the most on fears of further draining of liquidity from the banking system by the People`s Bank of China (PBoC). Meanwhile, markets await additional catalysts for new direction as uncertainty continues to dominate this sideways trade.
As of 00:00 a.m. ET, the Stoxx Europe 600 was down 0.27% at 337.46, dragged the most by utilities falling 0.66%.
- London`s FTSE 100 fell 0.29% to 6,810.61 as data showed the UK economic growth was unchanged at 0.7% in the fourth quarter, according to official preliminary data released today.
- Paris`s CAC 40 fell 0.21% to 4,405.27
- Frankfurt`s DAX 30 fell 0.06% to 9,693.62
Most of the European shares tracked losses Wall Street overnight, and Asia in particular. In China, money market rates fell to a seven-month low as the country`s central bank intervention to rein in credit growth and speculative lending.
Deteriorating economic conditions in China and fears of an asset bubble burst in the financial markets has increased fears among investors and caused them to favor safe-haven investments led initially by the Japanese yen.
China’s Shanghai Composite ended 0.64% lower at 2,021.85, falling to its lowest level in five months amid expectations that the weakness of real estate sector and the devaluation of the Chinese currency will reduce corporate profits.
European shares were also badly influenced by Swiss Credit Suisse AG falling 2% after reports that a US congressional committee said it had helped more than 22 thousand American customers dodge US taxes.
Gains were slightly evident in Spanish and Italian bourses, shrugging off the negative opening for other major benchmarks across Europe.
- Milan`s FTSE MIB rose 0.15% to 20,503.06 with Renzi winning the final confidence vote, pledging reform
- Madrid`s IBEX rose 0.15% to 10,257.80 as the country raised its growth forecast and announced tax cuts and new job creation incentives.
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