European Stocks Slips Lower – EURO STOXX50 Trading Negative, Outlook Cautious
Feb, 23rd 13:40
European shares were little changed in early deals on Friday as investors digested a flurry of earnings updates, with French auto parts maker Valeo and Royal Bank of Scotland among the top fallers.
Valeo slumped 9 percent to a six-month low as its second-half profit fell on adverse exchange rates and raw material prices, while RBS declined 4 percent after posting its first full-year profit since 2007. Traders said the underlying result missed expectations.
Telecoms were lifted by a 3.1 percent rise in BT Group after Britain’s telecom regulator OFCOM detailed rules encouraging more fiber broadband investment — including a decision not to regulate wholesale prices of some superfast broadband products sold by its Openreach division.
The pan-European STOXX 50 was flat in percentage terms by 0945 GMT, while the UK’s FTSE (FTSE) dipped 0.2 percent and Germany’s DAX (GDAXI) was flat.
The STOXX 50 is set to end the week flat as markets stabilize and volatility calms following a turbulent start of the month that sent the index to a near-six-month low. The STOXX 50 is now 3.5 percent above that low.
On the technical charts, EURO STOXX 50 is trading sideways below all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 45.39 and the MACD is above the signal line. Negative bias is dominating the market.
Buy digital Put options between 3426 and 3415, valid until 23:00 GMT February 23rd, 2018