European shares remained flat after China’s credit rating was lowered and the oil shortage agreement would be extended.
The Stoxx Europe 600 Index was flat at 8:36 pm in London. Real estate stocks were among the best performing sectors. Vonavia SE upgraded its forecast for the year in funding from the activities. On the other hand, mining shares have been the worst performing sector with the decline in metal prices after the dropping of China’s credit rating, the world’s largest commodity consumer. The Stoxx 600 Index rose 0.2 percent, supported by strong economic data from Germany and France supporting the rise in seasonal corporate stocks.
International credit rating agency Moody’s downgraded China’s credit rating, recording that the outlook for financial strength will deteriorate.
Switzerland’s commodity giant Glencore Plc fell 1.9 percent after it announced it had unofficial contacts with US-based Bunge Ltd. on a mutually agreed-upon commercial tie-up. OPEC countries are close to agreeing to extend oil shortages by nine months in order to support prices and stimulate economies.
Attention turned to the United States, to last meeting of the Fed, where signs of the pace of rate hikes could come. The New York stock exchange completed the day’s gains with the increase in US investment bank shares.
The Dow Jones Industrial Average rose by 43.08 points (0.21 per cent) to 20.937.91 points, while Standard & Poor’s 500 Index advanced by 4.40 points (0.18 per cent) to 2.398.42 points. The Nasdaq Technology Index rose 5.09 points (0.08 percent) to 6.138.71 points.
Goldman Sachs and Morgan Stanley‘s investment in US investment banks rose 1.7 per cent and 1.8 per cent respectively, while Bank of America‘s premium per share was 1.5 per cent. We will see how the decision of Moody’s about China will continue to affect global markets.