Major stock indices in Europe show a negative trend

European stocks traded in the red zone, as the increase of US bonds yield has pushed the dollar index to new highs, which has a negative impact on the valuations of mining companies and energy producers.

At the strengthening of the US currency contributed yesterday's statements by Fed Chairman Yellen, who noted that the rise in interest rates in the US may be 'appropriate in a relatively short time. " Thus, it is hinted that the rate could rise as early as next month. According to the futures market, the likelihood of tighter monetary policy in December is 90.6%. Rising interest rates will also signal that the US economic recovery is gaining momentum. In addition, investors see Trump expansionary fiscal policy as a factor of strengthening inflationary pressures in the United States.

Investors' attention is also drawn by statements from ECB President Draghi and Bundesbank head Weidmann. During his speech, Draghi said that the recovery of the eurozone economy is still highly dependent on the stimulus measures of the Central Bank. Such statements suggest that at its December meeting, the ECB will extend the program of quantitative easing (QE). "Now we can not weaken the vigilance of the European Central Bank and will continue to operate using all available instruments, while inflation steadily grows." - Said Draghi. Recall, according to official data, in October consumer price inflation in the euro area was only 0.5%, well below the ECB's target of 2%".

Meanwhile, Bundesbank President Weidmann stated that innovative tools should be used with extreme caution, and monetary policy should not respond automatically to low inflation. "Most of the factors holding inflation low are temporary and inflation in the euro area may rise to 1.5% by February". He also warned that the purchase of government bonds blurs the line between fiscal and monetary policy.

Certain influence also provided data for the euro area. A report from the ECB showed that the current account surplus widened in September to 29.8 billion from euro 22.9 billion at the end of August (figure was revised from 23.6 billion). In addition, it was reported that the seasonally adjusted balance of payments surplus declined to EUR 25.3 billion from29.1 billion. In August.

The composite index of the largest companies in the region Stoxx Europe 600 trading lower by 0.2 percent. Since the beginning of this week the index gained about 0.3 percent.

Fresnillo and Randgold Resources shares have fallen by 6.3 percent and 6.1 percent, as the price of gold fell.

Volkswagen shares rose by 0.3 percent after the automaker said it plans to cut 30,000 jobs by 2021, to help increase profitability and focus on new areas such as electric vehicles and unmanned.

Airbus Group quotes climbed 0.2 project amid reports that the Japanese company Peach Aviation ordered 10 A320 aircrafts worth $ 1.1 billion.

LafargeHolcim securities - the world's largest cement producer - dropped by 3.4 percent. The company announced a plan for buybacks in the amount of 1 millio swiss francs after the worsened outlook for earnings and cash flow for 2018.

At the moment:

FTSE 100 6756.39 -38.32 -0.56%

DAX -16.73 10668.81 -0.16%

CAC 40 4509.77 -18.00 -0.40%