The broad-based major European indices closed Lower in Tuesday’s trading session, as real estate stocks and building materials suppliers weighed down the markets
In economic news, Ben Broadbent, the Bank of England’s deputy governor monetary policy said in a speech today that Brexit could end up hurting Britain if it means reduced trade with the European Union,
“Put simply,” said Broadbent before the Scottish Council for Development and Industry in Aberdeen, “a significant curtailment of trade with Europe would force the UK to shift away from producing the things it’s been relatively good at, and therefore tends to export to the EU, and towards the things it currently imports and is relatively less good at,”
JPMorgan Chase CEO Jamie Dimon told a banking conference in Paris that Brexit would likely cause his company to move a lot of jobs out of London, and to use Frankfurt as the legal domicile of its European operations.
“We will probably use the Frankfurt bank, because we will have the licenses already,” Dimon said during a banking conference in Paris, according to Reuters. “But the people could be in Paris, or Netherlands or Madrid …we haven’t decided yet.”
In Germany, trade turnover totaled EUR2 billion ($2.3 billion) in 2015, which was a 2.5% increase on 2014, according to The Federal Statistical Office (Destatis). Destatis also reported that wholesale trade accounted for 59%, retail trade accounted for 28.9%, and motor vehicle trade accounted for 12.1% of the turnover.
In equities, publishing company Pearson led the FTSE lower in London, falling 5.1%, followed by retailer Marks and Spencer, and food processing company Associated British Foods, which dropped 4.7% and 4.1% respectively. Insurance company Prudential was down 2.7%, while luxury goods retailer Burberry Group, and real estate company British Land Company closed 2.5% and 2.1% lower respectively.
In Frankfurt, utilities weighed down the DAX as electricity and natural gas suppliers RWE and E.ON lost 1.2% and 0.8% respectively. Construction materials supplier Henkel, software company SAP, and residential real estate company Vonovia dropped 1.2%, 1.1%, and 0.8% respectively. Kidney dialysis company firm Fresenius Medical Care, was down 0.7%, while pharmaceutical firms Merck and Bayer declined 0.5% and 0.3% each.
And in Paris, food processing company Danone led the CAC lower, dropping 1.8%, followed by luxury goods retailer PPR, and management services company Sodexo, which were off 1.6% and 1.5% respectively. Commercial real estate company Unibail Rodamco declined 1.2%, while building materials suppliers LafargeHolcim and Compagnie de Saint Gobain were each down 1.2% and 1.1% respectively.
The FTSE fell 0.55%, the DAX dropped 0.07%, and the CAC-40 was down 0.48%.
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