Major stock indices in Europe trading in the red zone

European stock indices show a moderate decline as investors' fears that the European Central Bank is moving in the direction of tightening monetary policy. However, a further decline of indices hinder positive corporate news, as well as statistics on the UK and the eurozone.

Yesterday, Bloomberg, citing unnamed sources in the Central Bank, said that the ECB will gradually reduce the monthly purchase of assets in the amount of 80 billion euros before March 2017. The agency said that the ECB could begin a steady decline in the volume of purchase of assets of 10 billion euros per month.

"The central bank may try to test the market and see how reacts to this kind of news and thus reduce the pressure on the banking sector, - said William Hobbs, head of Barclays Plc investment unit -. ECB officials may come to the realization that the current monetary policy does not help the banking sector, which could eventually make it counter-productive. "

In terms of data, Markit Economics reported that the eurozone economy is losing momentum, as the looming political uncertainty facing the region. The final composite index, covering manufacturing and service industries fell in September to a level of 52.6 points compared with 52.9 points. The indicator has coincided with a preliminary estimate, however, it was at its lowest level since January 2015. "The slowdown in growth in the region partly reflects growing caution among business, - said Chris Williamson, chief economist at IHS Markit -. We believe that this trend will continue into next year, as Brexit compounded by uncertainty ahead of elections in France and Germany, along with the ongoing political instability in Italy and Spain. " In addition, the report stated that the index of business activity in the services sector fell to 52.2 points from 52.8 points in August.

A separate report showed that business activity in the UK's services sector grew more than expected, casting doubt on the need for another interest rate cut by the Bank of England next month. The index fell slightly in September - to 52.6 points from 52.9 points in August, when was noticed the biggest monthly increase for the entire 20-year history of the research. Nevertheless, the last value was significantly higher than the average forecast of 52.0 points. The report stated that the overall performance of the economy in the past month was the highest since January. Recall, Markit research on activity in the manufacturing sector and the construction sector, published earlier this week, were also better than expected

The composite index of the largest companies in the region Stoxx Europe 600 was down 0.9 percent.

Capitalization of German bank Deutsche Bank, which has lost nearly 50 percent of its value this year, increasing the fifth day in a row, which is the longest series in eight weeks. Shares rose 0.2 percent, due to the gradual reduction of concerns about the fact that the bank may need to increase the amount of capital.

The cost of SFR Group fell by 4.2 percent, as Altice NV dropped its offer to purchase the rest of the telecom unit after the French financial regulator advised against such a move.

Tesco shares jumped 9.9 percent after reporting that first-half profit exceeded analysts' expectations. The company also said it will increase investment in order to contribute to profitable growth in the next three years.

Delta Lloyd shares rose 28 percent after the NN Group offered to buy the company for 2.4 billion euros to increase coverage in the pension and insurance sectors.

At the moment:

FTSE 100 7044.20 -30.14 -0.43%

DAX -64.05 10555.56 -0.60%

CAC 40 4475.04 -28.05 -0.62%