European Stocks Went Down For the 4th Straight Day

For the 4th straight day, European stocks have declined now, as the benchmark stock gauge Stoxx Europe 600 Index tumbled to the lowest level in 2013, after the automakers and commodity prices experienced a slid.

The benchmark gauge went down to 283.73 on today, after going down by 1.5%. This marks the gauge’s lowest level since 31st December. The gauge experienced a slide earlier on speculation that the credit rating of Germany can be downgraded; however, the losses were recovered in parts after some time. Incidentally, despite the losses, the gauge has still increased by 1.5% in 2013, thanks to the Central Banks’ decision of maintaining stimulus measures and budget agreement of the US lawmakers.

According to the Fund Manager and Vice President of Mirabaud Securities LLP, John Plassard, the German economy is not holing up that well as it used to making the investors worried. Apart from that, the downgrade rumors spread huge fear in the market on today as well. The gold prices are plunging as well, so as the Chinese GDP figures, taking European stocks to a middle of an uncertain phase. Even chances of a possible correction cannot be ruled out altogether.

In 16 of the 18 Western European markets, the National Benchmark indexes went down. The benchmark gauge of UK, FTSE 100 Index declined by 1%. When it comes to the benchmark gauges of France and Germany, those declined by 2.4% and 2.3% respectively.

Around 14,000 DAX Index futures contracts expiring in June changed hands within 5 minutes on today, at least 15 times of the 20-day average volume. According to the operator of the exchange, Deutsche Boerse, the volatility of the index was caused by certain external events.

BHP Billiton declined by 3.4% on today and each share is currently priced at 1,779 Pence. Incidentally, the biggest earner for the miner, iron ore’s output was at 40.2 million metric tons in the three months ending on 31st March, much lower to the analysts’ prediction of 42.3 million tons.

After registrations went down by 10% in March, the European car sales figures are now heading towards a 20-year low figure. The German auto market has plummeted by 17%, as stated by the European Automobile Manufacturer’s Association. Among the 19 industry groups under the Stoxx 600, a measure for the automobile companies went down the most.