European markets continue to see selling, while Greek stocks post further losses.
Stock market indices are in the red in Frankfurt, Paris, as oil prices remain elevated.
Brent at $113.98 Brent, France’s 10-year yield at 5.089% and mixed trading in European bank shares.
Despite futures turning positive in New York, investors in Frankfurt, Paris and elsewhere continue to sell. S&P 500 futures are up 0.10% at 7,672 points, but pressure in oil and bond markets is keeping sentiment on stock markets negative.
The DAX is at 25,238 points (-0.32%), the CAC 40 at 7,754 (-0.24%) and the EuroStoxx Banks at 596.4 points in a corrective upswing. It remains to be seen whether buyers will step in on Euronext Athens.
For now, while the EuroStoxx Banks is rebounding, the Banking Index remains in a downtrend. Selling has been steady since the start of the session, with the first orders at 2,951 points, followed by a downward gap and a slide to 2,878 points, as investors resume selling shares in all four systemic banks.
Trading remains firmly in the red, reflecting continued partial profit-taking, particularly among medium-term investors, as we explained in our pre-opening commentary. Order flow accelerated during the first hour of trading, suggesting that fast money is heading for the exit in a hurry.
Turnover was nearly €60 million between 10:30 and 11:30, with just €4.05 million in pre-arranged trades, pointing to increased net selling. Of the 9.8 million shares traded, 8.7 million changed hands mainly in bank stocks, as the sector remains in sellers’ sights.
The Banking Index is down more than 3%, with a mini sell-off in Piraeus, National Bank, Alpha Bank and Eurobank. A similar trend is evident in Bank of Cyprus, Optima Bank and Credia Bank, with particularly heavy trading in the last of these.
Alongside bank stocks, sellers are also persistent across most blue chips, pulling the FTSE 25 down from 6,593 to 6,493 points. There are signs of forced position-closing by leveraged accounts in 3-4 large caps, as if someone were in a hurry to reduce their position (or cover it).
The pattern of selling in bank stocks and large caps, even shortly after 11:30, makes it clear that one or more managers of foreign portfolios are reducing positions across the broader FTSE 25 equity portfolio.
The ratio of advancing to declining shares stood at 21/82 shortly after 11:30, with no sign of a reversal.