Banks outperform weaker European stock market open on rate hike talk
MILAN: European shares fell in opening deals on Friday, led lower by export-oriented carmakers and a pull-back in mining stocks, but banks outperformed after an ECB policymaker rekindled talk of a possible rate hike.
ECB policymaker Ewald Nowotny said the central bank will decide at a later time whether to raise interest rates before or after ending its bond purchase programme.
By 0825 GMT, the pan-European STOXX 600 index fell 0.4 per cent, erasing parts of the gains made in the previous session. But banks, whose lending business benefits from higher rates, bucked the weaker open.
Europe's bank index was down 0.1 per cent, while the euro zone sectoral index rose 0.4 per cent, led by gains of between 1.4 per cent and 0.7 per cent in Germany's Commerzbank , BNP Paribas and Intesa Sanpaolo.
Top loser on the STOXX index was Tullow Oil, down 14 per cent, after the oil services company announced a 607 million pound share sale to reduce its debt.
ECB policymaker Ewald Nowotny said the central bank will decide at a later time whether to raise interest rates before or after ending its bond purchase programme.
By 0825 GMT, the pan-European STOXX 600 index fell 0.4 per cent, erasing parts of the gains made in the previous session. But banks, whose lending business benefits from higher rates, bucked the weaker open.
Europe's bank index was down 0.1 per cent, while the euro zone sectoral index rose 0.4 per cent, led by gains of between 1.4 per cent and 0.7 per cent in Germany's Commerzbank , BNP Paribas and Intesa Sanpaolo.
Top loser on the STOXX index was Tullow Oil, down 14 per cent, after the oil services company announced a 607 million pound share sale to reduce its debt.
