Europe Stocks Slip With Metals; Pound Erases Drop

Indonesia Stock ExchangeA man using his mobile phone at the Indonesia Stock Exchange in Jakarta on Aug 13. PHOTO: BLOOMBERG
  • Europe Stocks Slip With Metals; Pound Erases Drop

European stocks headed for the first drop in three days as a selloff in industrial metals weighed on mining shares. The weekend’s terror attack in London couldn’t hold back the pound, which erased a loss to strengthen ahead of the U.K. election.

Miners were the biggest losers as the Stoxx Europe 600 Index retreated, while zinc and tin led base metals lower. Treasury yields increased from the lowest since November. Mexico’s peso traded near the strongest level in seven months as President Enrique Pena Nieto’s party forged ahead in a key state election. Oil had climbed as a political spat between several energy-producing nations in the Middle East escalated, but it gradually gave up gains.

While the Federal Reserve has entered a blackout period ahead of the U.S. rate decision next week, there’s still plenty on the agenda:

  • Former FBI Director James Comey will testify before Congress following his dismissal by Donald Trump.
  • U.K. voters go to the polls Thursday. Surveys of voters over the past few weeks have indicated a tightening race, increasing the chance that Prime Minister Theresa May might not get an increased majority.
  • Policy decisions from central banks in India and Australia are due during the week, as well as data on Chinese trade and inflation, U.S. factory orders, European industrial output figures and GDP reports for Australia, Japan and the euro area.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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