Arab Today, arab today financial stocks sales curb betrays eurozone flaws
Last Updated : GMT 21:11:00
Arab Today, arab today
Arab Today, arab today

Financial stocks sales curb betrays Eurozone flaws

Arab Today, arab today

Arab Today, arab today Financial stocks sales curb betrays Eurozone flaws

Paris - Arabstoday

A piecemeal ban on short-selling of financial stocks highlighted flaws in Eurozone policy and investors said relief for bank stocks would be temporary in the absence of coordinated action by Europe\'s governments. France, Italy, Spain and Belgium imposed the ban, under which details varied according to country — while Britain, the Netherlands and Austria said they saw no need for action and Germany remained silent. \"It\'s naive to think that this in some way helps things,\" said Dipesh Patel, head of European equities at Espirito Santo Investment Bank. \"The worry now is that this is a last-ditch attempt to keep stocks up against investor opinion.\" Article continues below European markets have swung wildly recently on rumours about the health and funding needs of indebted Eurozone governments, and more recently on some of its major banks, which have sent shares tumbling. Yesterday morning the STOXX Europe 600 banking index yo-yoed, then crept steadily higher. By 0849 GMT it showed a 2.2 per cent gain, helping the broader market to advance 3.8 per cent. French banks, at the centre of much of the market\'s attention and included in the ban on short-selling, were up: Societe Generale rose 1.2 per cent, BNP Paribas added 1.4 per cent and Credit Agricole gained 0.3 per cent. The banking index has fallen 36 per cent from a peak in February and is down some 17 per cent in August alone. Short-selling is the process through which an investor borrows shares and sells them on the expectation their price will fall and they can be bought back at a lower price. However, market players said the ban did not tackle the root causes of investors\' concerns — joined-up, long-term fiscal policy in the Eurozone — and pointed out that nervous mutual funds were currently behind the sell-off. Crackdown A crackdown on speculative short-selling is unlikely to arrest moves from institutional investors who have decided they have little stomach for big holdings in banks and indebted governments who might call on them again for emergency capital. \"Data from various regulators of late have shown there is no short-selling activity out of the norm,\" said Davide Burani, financial analyst at Italian fund manager Horatius. \"Investors are selling in Italy from fear. Italian banks are holding around €200 billion of Italian bonds.\" Alessandro Frigerio, fund manager at Milan;s RMJ Sgr said the ban could work if, combined with proposals from Tuesday\'s meeting of French President Nicholas Sarkozy and German Chancellor Angela Merkel, it were to \"give the idea that there could be a rescue for the Eurozone and a rebound in the market\". The European Securities and Markets Authority (ESMA) said short-selling combined with rumour-mongering created a strategy that was \"clearly abusive\". \"Some authorities have decided to impose or extend existing short-selling bans in their respective countries,\" it said late on Thursday. \"They have done so either to restrict the benefits that can be achieved from spreading false rumours or to achieve a regulatory level playing field.\" Speculation France banned short selling on 11 financial stocks for 15 days, Spain said it would protect 16 stocks for 15 days, Belgium banned short selling of four financial stocks for an indefinite period and Italy said its ban covered 29 companies in the banking and insurance sector. Banks on the list included France\'s BNP Paribas and Societe Generale , and Spain\'s Santander and BBVA. French Finance Minister Francois Baroin said he welcomed the ban and added the country\'s banks were among the world\'s safest. The recent market turmoil focused on speculation about French banks, which are heavily exposed to European countries at the centre of the region\'s debt crisis. Societe Generale, France\'s No 2 lender, has especially been in the eye of the storm. Those rumours sent shock waves through credit markets, pushing interbank borrowing rates higher and triggering a three-month high of €4 billion (Dh20.92 billion) in emergency overnight borrowing from the European Central Bank. But French 10-year bond yields dipped below 3 per cent yesterday for the first time since November showing demand for the country\'s debt remained intact despite banking sector concerns. The European assault mirrors one by the US Securities and Exchange Commission on September 19, 2008, four days after Lehman Brothers collapsed, to temporarily ban short selling in 799 banks and other financial institutions. Britain imposed a similar prohibition at that time. The US move was of questionable value, according to several academic studies. While share borrowing fell during the three-week ban, financial stocks continued to plummet.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today financial stocks sales curb betrays eurozone flaws Arab Today, arab today financial stocks sales curb betrays eurozone flaws

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today financial stocks sales curb betrays eurozone flaws Arab Today, arab today financial stocks sales curb betrays eurozone flaws

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday