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
markets.
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.
