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    06.07.2016 10:41 Major stock indices in Europe declined

    06.07.2016 10:41

    Most European stock indices fall on the background of a new wave of concerns about the effects of Brexit for the global economy.

    FTSE rose at the opening due to the weakening of the pound sterling, supporting shares of exporters, as well as the rise of securities of mining companies following an increase in the price of gold.

    The composite index of the largest companies in the region, Stoxx Europe 600 fell during trading 1,1% - to 320.50 points.

    Shares of Volkswagen AG lost 0.2%, shares of BMW AG fell 0.6%, while shares of Daimler AG retreated 0.4% on reports that Germany's antitrust regulators started an investigation.

    Shares of British alcohol producer Diageo rose in price by 1,7%, British American Tobacco - by 0.4%.

    Shares of Burberry Group, one of the world's leading manufacturers of "luxury" items rose1%. Experts at UBS improved the 12-month target price of shares for the company up to 17 pounds from 15 pounds and recommended investors to "buy" Burberry, noting that the weakening pound compensates for the weakness of retail demand.

    Securities of gold mining companies Fresnillo and Randgold Resources jumped by 4.5% and 4.7%.

    "The insurance sector also came under pressure after the Bank of England Governor Mark Carney said that fears surrounding the area, in tough economic conditions".

    Shares of British Insurers Standard Life, Aviva and Prudential fell during trading on Wednesday by 1.7%, 2.5% and 1.4%. Earlier these companies have suspended trading securities of real estate funds, as investors began to withdraw investments due to Brexit.

    Shares of construction companies Barratt Developments and Taylor Wimpey dropped by 4.3% and 3.5%.

    The cost of airline EasyJet shares fell 2.1%. EasyJet reported an increase in the number of passengers carried in June by 5.8% - to 6.56 million people. The growth rate, however, was worse than the average for the 12 months (7.1%).

    Shares of Spanish Caixabank fell 0.4% after the lender warned that the expected loss amount of 1.25 billion euros ($ 1.4 billion) related to mortgage loans.

    At the moment:

    FTSE 6522.46 -22.91 -0.35%

    DAX 9373.93 -158.68 -1.66%

    CAC 4092.51 -70.91 -1.70%

     

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