By Investors Hub
European stocks are extending losses for a fourth straight session on Friday and the dollar declined versus a basket of currencies as investors fretted about a potential trade war and the prospect of the ECB and Bank of Japan exiting extraordinary stimulus.
Bank of Japan Governor Haruhiko Kuroda said an exit from the current ultra loose monetary policy is likely around fiscal 2019 when it achieves 2 percent inflation target.
“The members of the policy board and I think that prices will move to reach 2 percent in around fiscal 2019,” Kuroda told parliament. It will be natural to think about and debating exit at that time, he added.
While the U.K.?s FTSE 100 Index has slumped by 1.1 percent, the French CAC 40 Index and the German DAX Index are down by 1.9 percent and 2.2 percent, respectively.
Steelmakers Salzgitter, ThyssenKrupp and ArcelorMittal have fallen sharply after the U.S. said it would impose tariffs of 25 percent on steel imports and 10 percent on imported aluminum.
Cement giant LafargeHolcim has also slumped after the cement giant posted a fourth quarter net loss of 3.12 billion Swiss francs, hit by an impairment charge.
German chipmaker Infineon Technologies has dropped after announcing a joint venture with China-based SAIC Motor Corp. to manufacture power modules for the dynamically developing electric vehicle market in China.
GKN shares have also declined in London. The engineering group confirmed that it is in talks about selling its automotive business to Dana.
On the other hand, plastic and fibre products manufacturer Essentra has rallied after narrowing its annual pre-tax loss.
Packaging and paper company Mondi has also advanced. The company announced a special payout after reporting modest growth in full-year underlying profit.
On the data front, German retail sales decreased 0.7 percent month-on-month in January, confounding expectations for an increase of 0.7 percent, official data showed. Sales fell 1.1 percent in December.
German import price inflation eased to the lowest since late 2016, while wholesale sales fell for the first time in eight months.
The U.K. construction sector continued to expand at a subdued pace in February, survey data from IHS Markit showed. The construction Purchasing Managers’ Index rose to 51.4 in February from a 4-month low of 50.2 in January.
Adedapo Adesanya