The German market is trading lower on Thursday, ahead of key policy decisions from the European Central Bank and the Bank of England. Geo-political tensions aggravated after Russian President Vladimir Putin issued a decree banning the imports of agricultural products from nations that have imposed sanctions on Russia over Moscow's involvement in the Ukraine conflict.
In economic news, Germany's industrial production grew marginally at a slower-than-expected pace in June, as geopolitical instability weighed on economic activity.
Industrial output increased 0.3 percent month-on-month in June, reversing the revised 1.7 percent fall in May, Destatis reported. The June's rate of growth was slower than the expected 1.2 percent increase. Nonetheless, this was the first rise in four months.
At 7 am ET, the Bank of England will announce its monetary policy decision. The bank is expected to maintain its base rate at 0.5 percent and its total Asset Purchase Facility at 375 billion pounds.
The European Central Bank is due to announce its rate decision at 7:45 am ET. The central bank is expected to maintain its deposit rate and refinancing rate at -0.1 percent and 0.15 percent, respectively.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.12 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is unchanged.
The DAX index is currently losing 0.19 percent.
Beiersdorf is declining 4.5 percent. The personal care products maker reported a marginal growth first-half revenues.
Sports goods giant Adidas and reinsurer MunichRe are falling 2.7 percent and 2.1 percent, respectively. Both reported financial results today.
Car parts maker Rheinmetall is declining close to 9 percent. The company cut its annual outlook.
Commerzbank is gaining 2.5 percent after reporting increased profit for the second quarter. Deutsche Bank is moderately higher.
Symrise, which reported results, is notably higher.
Most other major markets in the region are falling.
The Asian stocks fell broadly as investors weighed developments in Russia and waited for central bank meetings in Europe and Japan.
In the U.S., futures point to a slightly higher open on Wall Street. In the previous session, stocks hit two-month lows before ending marginally higher, as healthy corporate earnings offset growing concerns about the ongoing conflict in Ukraine.
Crude for September delivery is gaining $0.27 to $96.65 per barrel, while gold is losing $2.9 to $1305.3 a troy ounce.
For comments and feedback contact: editorial@rttnews.com
Market Analysis