European Stocks Decline on German Exports Data

Due to the drop in the German exports, most of the European stocks declined today. The Stoxx Europe 600 Index suffered a decline of 0.1% and it finished at 286.25. More than 60% of the total listed companies experienced drop today. The total volume of the trading was however 46% more than the 30-day average. Incidentally, Stoxx 600 experienced its biggest value since February; on last week as the US budget deal was finalized.

Bob Parker, who works as the Senior Advisor for Credit Suisse Asset Management, stated that investors are aware that economic data to come out of the different countries of Euro zone are bound to be poor. Hence, many investors are willing to diversify in different equities across the entire region. He added that market is going to experience a lot of day-to-day volatility and it is expected to be frustrating over the course of next few days.

For the month of November, the German stocks experienced a bigger drop than the initial forecasts. Export figures actually got down by 3.4% from that of October and this marks the biggest drop in the last year. The statistics was released by the Federal Statistics Office. The initial estimate was of a 0.5% decline in comparison with October and the actual figures were worse than that. However, a gauge which determines the confidence of consumers and executives of the European region experienced a high and went to 87 in November. The forecast was of 86.3.

Out of the 18 Western European stock markets, 10 National benchmarks experienced declines. The DAX Index of Germany went down by 0.5%, whereas the FTSE Index of UK experienced a slide of 0.2%. The CAC 40 Index of France was more or less unchanged though.

Incidentally, the Stoxx 600 Index has already gone up by 2.4% in the New Year. The current valuation is 19 times of the reported earnings and it is nearing the highest level experienced in March, 2010.

Renowned retailer Debenhams experienced the biggest slide in last 3 years as it decided to cut the profit-margin forecast. Vodafone Group, on the other hand, increased by 1.7%. The Norwegian offshore surveyor TGS Nopec Geophysical ASA increased by 7% as the company published revenue forecast better than the estimates of economists. BMW, on the other hand, went down by 3.4% and finished at 73.21 Euros.