Global financial markets were varied as investors continued to wade through a sea of fiscal headwinds. In the United States, it’s common for us to see the S&P 500 index fall during September—by an average of 4.2% over the last five years. Over the past 10 years, this average decline is more than 2%. As September progresses, these trends should worry any investor who cares about long-term market stability.
Across the Atlantic, the U.K.’s FTSE index fell 0.4%, showing the same fear of such economic pressures. Germany’s DAX index fell, decreasing by 0.88%, while Italy’s FTSE MIB experienced a slight decline of 0.46%. In contrast, France’s CAC 40 demonstrated strength and durability, moving flat with the overall market direction. The Stoxx Europe 600 index, a broad measure of performance across Europe, dropped 0.6%. This decline marks a broader trend of negative returns in European equities.
Grossman’s remarks came after Partners Group posted record first-half profits of 578 million Swiss francs, or $720 million. This surprise was above analysts’ expectations of 570m CHF. After this announcement, shares in Partners Group soared, which signals investor confidence in the private equity firm’s bottom-line strength.
Fresenius Medical Care faced difficulties as its stock fell by 5.5% after UBS downgraded it to a “Sell” rating. This downgrade speaks to bigger questions about the company’s long-term prospects and a rocky road to recovery that may lie ahead.
Monte dei Paschi has raised its offer for Mediobanca. Under pressure from shareholders, the company has recently raised its cash offer to 0.90 euros ($1.05) per share. This bid represents an 11.4% premium on Mediobanca’s share price at January 23. It shows how intense the competitive desire is among them to increase their market share. Banca Generali joined in an attempted takeover by Mediobanca but was unable to win enough shareholder support. This misstep has muddied the waters of an already contentious conversation within the industry.
U.S. stock futures were flat on Monday night. Investors are proceeding very cautiously as they wait for the next shoe to drop under the new calling card of economic indicators. In the Asia-Pacific region, markets traded in green and red territory, as varying sentiments echoed through different economies.