European stocks experienced the biggest decline in last 10 months mainly because of a couple of reasons: Federal Reserve’s signal to scale back the monetary stimulus and the weak Chinese manufacturing data. The benchmark stock gauge Stoxx Europe 600 Index went down by 2.1% and the same is currently at 303.99. Out of the 600 companies listed under the same, only 26 were able to go ahead. On yesterday, the stock gauge jumped to its highest level since June, 2008.
As far as comments of the Senior Strategist of PFA Pension A/S, Witold Bahrke is concerned, on the morning; the European stocks were hit hard by the risky assets. Apart from that, the negative signals coming out of the macro fundamentals and monetary policy didn’t help things either.
The share trading volume for today was 24% higher in comparison with the average of the last 30 days. The relative strength index of the gauge declined to 55 from its earlier value of 77. Incidentally, relative strength index measures how fast the prices are increasing. Any reading above 70 denotes that the stocks are rallying faster than the average.
The national benchmark indexes tumbled in all of the 18 Western Europe markets. The benchmark gauge of UK, FTSE 100 declined by 2.1%, marking its biggest decline in the last 12 months. On the other hand, both DAX of Germany and CAC 40 of France went down by 2.1%.
The 2nd largest carmaker in Europe, Peugeot, went down by 5.3% and each share costs 6.99 Euros now. Daimler AG tumbled by 3.3% to 48.05 Euros, whereas, Renault SA declined by 4% to 59.66 Euros. The biggest platinum producer in the world, Anglo American experienced a tumble of 5.1% and each share of the same costs 1,570 Pence now. On the other hand, the 2nd largest mining company in the world, Rio Tinto Group saw its shares declining by 4.3% taking price of each share to 2,913 Pence.
The biggest bank in Europe, HSBC Holdings went down by 3.4% and each share costs 741.8 Pence now. On the other hand, the largest lender of Switzerland, UBS AG, declined by 3.8% and each share is priced at 17.32 Swiss Francs. An index of the banking shares experienced a slid of 3.2%, the biggest since last September. SABMiller shares declined by 2.1% to 3,462 Pence.