Risk-Off Grips Europe Post-BOJ, Poor Earnings Weigh
The risk-sentiment took a hit this Thursday after the BOJ failed to
unveil further stimulus measures and stood pat instead, which
disappointed markets and squashed hopes of cheap money flooding the
The European stocks followed their Asian counterparts lower as risk-off extended into Europe, while poor earnings results in the region also weighed on the investors sentiment.
Germany’s Deutsche Bank reported a 22% decline in revenues in Q1, while net profit slumped 58% when compared with the same period last year.
French airliner Airbus posted a 50% slump in its Q1 net profit, while Q1 net profit of Spanish lender BBVA tumbled 54%.
FTSE leads European stocks decline
Germany's DAX 30 index drops -1.04% to trade at 10,191, while the UK's FTSE 100 index sinks -1.20% to 6,246. Among the other indices, the French CAC 40 index slipped -1.13% to 4,507, while the pan-European benchmark, the Euro Stoxx 50 index fell -1.25% to 3,088.
Markets now look forward to the crucial German prelim CPI report due later this session for further momentum. The German CPI is expected to come in at 0.2% y/y in March, a slight slowdown from the 0.3% rate booked in February. On monthly basis, prices are seen dropping 0.1%, sharply down from the 0.8% gain before.