openPR Logo
Press release

Bradley Associates News Blog Info: European Governments Extended A Ban

PARIS—Several European governments extended a ban on short selling of financial shares Thursday, seeking to keep a lid on volatility in European banking stocks amid deep bearishness.

In an apparently coordinated move, France, Italy and Spain announced they were extending bans, while Belgium’s stock market regulator, which had imposed an indefinite ban two weeks ago,said it would lift the short-selling ban only when market conditions allow.

The moves extend restrictions that were put in place on Aug. 12 against investors making certain types of bearish bets, as concerns have swirled about banks’ holdings of troubled government bonds and the weakness in the overall economy. The search for quick fixes underscores attempts by regulators to wield a big stick in the face of what many view as unfettered speculation.

Short-selling, a trading strategy that pays off if stocks tumble, is widely regarded in the investment community and in academia as a legitimate, and even healthy, way for markets to function. Bank stocks in the countries that imposed restrictions have continued to move wildly up and down, although some have showed signs of stability and many gained ground on Thursday in line with a rise in U.S. financial stocks.

“Banking shares indeed went up on Aug. 12, but then they fell again the next week,” said Andrzej Kawalec, a fund manager at Moneta Asset Management in Paris “Short-selling definitely makes things worse when there are downward swings, but when there is fundamental reason for a decline, shares will fall anyway.”

The bans were due to expire in France, Spain and Italy after the close of trade on Friday. Instead, Spain and Italy’s regulators extended the restrictions until Sep. 30, while France’s regulator said the ban would be in place until Nov. 11, at the latest, although it will review it in late September.

France was the focus of much of the wild swings in banking stocks earlier this month, with shares in the second-largest listed bank Société Générale SA falling more than 20% at one point on Aug. 10 as unfounded rumors about its future swirled.

Shares in Société Générale and its larger rival BNP Paribas SA jumped close to 5% the day the ban started, but both have gradually fallen over the past two weeks and the restriction failed to stop steep moves. Previous bans on short selling yielded the same kind of effects on share prices, Mr. Kawalec said.

In Spain, bank stocks have recovered some ground. Shares in Banco Popular Espanol SA have gained 9% and Banco Sabadell SA are up 12% since the ban took effect, while Spain’s benchmark index has gained just 0.6% in the same period.

Reemt Seibel, a spokesman for a pan-European securities regulator, said regulators will now have to identify whether abusive speculative behavior would return if the bans are dropped.

Any European effort to clamp down on short selling faces a major obstacle: the unwillingness of U.K. authorities to implement such restrictions. While Frankfurt, Paris, Milan and other European cities have major stock exchanges, London is Europe’s undisputed leader, so its lack of participation is a major gap.

A spokesman for the U.K. Financial Services Authority said Thursday it has no plans to ban short selling, while German regulators said that they saw no need to step up the limited ban on short-selling that had already been in place in the country.
—Riva Froymovich and Christopher Bjork contributed to this article.

Write to Inti Landauro at inti.landauro@dowjones.com

Bradley Associates News Blog Information is a news source for anyone interested in cutting-edge science and technology, a science community blog if you like, stock market news, community and developing stories.Readers can then comment on articles posted and even comment on the comments. Spam is not tolerated and attempts to use commenting as a form of text advertising is in vain as links are nofollow and spurious usernames are edited.

C.J. Hambros Plass 2c,
0164 Oslo
Norway

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Bradley Associates News Blog Info: European Governments Extended A Ban here

News-ID: 192787 • Views:

More Releases from Bradley Associates News Blog Info

Bradley Associates News Blog Info: Post, Espanja tuotokset jatkaa. maaliskuuta s …
Madrid (MarketWatch) – Sijoittajat palasi pääsiäislomia tiistaina oli Espanjan tuoreen tavoitteena, työntämällä tuotokset uudelle tasolle vuodeksi, sillä markkinat unohtaneet hallitusta täyttämään se viimeistään verotuksen tavoitteita. Tuotokset 10 vuoden Espanjan valtion joukkolainojen (ES:10YR_ESP) määrä nousi 19 peruspistettä ja 5.93 %, korkealla sitten marraskuussa. Kun 10 vuoden Italian valtion joukkolainojen (SE:10YR_ITA) alkoi, 31 peruspistettä ja 5.67 %, vakavammaksi kuin puolivälistä lähtien. helmikuuta. Paine pysyy Espanjan tuotokset. Tällä välin, että sijoittajien vaatimaa premium pidä 10-vuoden
Overview: Markets unmoved from IMF issues though cautious with pressure
This stunning resignation of IMF chief Dominique Strauss-Khan leaves international markets frosty, having merely a protracted pressure towards the top of the worldwide dilemma loan provider prone to put in every concern. Whatever worry is present usually leaders might end up in stalemate in the dialogue along with a fresh problems fills up without no one directing the organization who is able to generate compromises. Even with getting global head lines, Strauss-Kahn's

More Releases for European

European Gastroenterology Congress
Peers Alley Media Conferences would like to invite all the outstanding gastroenterologists, gastroenterology surgeons, scientists, academicians, young researchers, business delegates and students from all around the world to attend European Gastroenterology Congress from March 23-24, 2020 in Paris, France. This conference gives an unparalleled opportunity to network with colleagues and learn from the different leaders in gastroenterology research. This conference makes a perfect platform for global networking as it brings together the
23rd European Nephrology Conference
23rd European Nephrology Conference is the world’s leading conference for Nephrology professionals to gather and contribute their research for developing the new techniques in the field of Nephrology. Nephrology Conferences offers over 30 sessions from different areas in the field of Nephrology in the form of Keynote, Plenary and workshop sessions including oral and poster presentations. Nephrology Conferences which is going to be held in global & ancient city Rome, Italy
4th European Biopharma Congress
Biopharmaceuticals Conference Series Conference Series has been instrumental in conducting international Biopharmaceuticals meetings for several years, and very excited to expand Europe, America and Asia Pacific continents. Previous meetings were held in major cities like San Francisco, Baltimore, with success the meetings again scheduled in continents. 4th European Biopharma Congress, is scheduled to be held during November 09-11, 2017; at Vienna, Austria. The opportunity in biopharmaceuticals is big and growing too
18th European Diabetes Congress
It takes us immense pleasure to announce the conference that 18th European Diabetes Congress which is going to be held during July 17-18, 2017 at Lisbon, Portugal. Euro Diabetes 2017 conference will focus on the latest and exciting innovations in all areas of Diabetes research which offers a unique opportunity for investigators across the globe to meet, network, and perceive new scientific innovations. This year’s annual congress highlights the theme, “Diabetes
European Data Portal launched
Luxembourg – The European Commission has launched a quality-assured beta version of the European Data Portal, with more than 240,000 datasets, at the European Data Forum. An international consortium, which is led by Capgemini and of which con terra is a member, is responsible for the implementation. The European Data Portal (www.europeandataportal.eu) enables fast and simple searching of open data from 34 European countries and supports their systematic onward use.
PRISMA European Capacity Platform named Project of the Year at European Gas Conf …
The brand new PRISMA European Capacity Platform, BP’s Vice President for Shah Deniz, Al Cook, and Dr Jonathan Stern of the Oxford Institute for Energy Studies, were honoured at the annual European Gas Conference Awards at the Palais Coburg in Vienna on Wednesday evening. During the awards ceremony, which was attended by leading experts from the European gas industry, PRISMA was named Project of the Year; Al Cook was