EUROPE MARKETS: European Stocks Log Tiny Gain As Oil Shares Recover
June 22 2017 - 11:27AM
Dow Jones News
By Carla Mozee and Sara Sjolin, MarketWatch
Euro trading below $1.12
European stocks ended marginally higher after a volatile session
on Thursday, as energy shares trimmed losses on the back of a
rebound in oil prices.
The Stoxx Europe 600 ended 0.01% higher at 388.53, after trading
as high as 388.71 and as low as 386.10 earlier in the day.
The choppy session came as traders kept a close eye on oil
prices, which entered bear-market territory earlier this week on
concerns of rising production on the U.S., Nigeria and Libya. On
Thursday, crude oil jumped 1.6% to $43.19 a barrel, but remained
volatile.
"The turbulence in the energy market is weighing on investor
sentiment. Oil has dropped a substantial amount since March and
dealers are worried it could diminish inflation and growth
prospects," said David Madden, market analyst at CMC Markets, in a
note.
"Disinflation is the last thing traders want to see, and while
oil remains relatively low it will chip away at investor
confidence. A high level of inflation is a problem for an economy,
but so is low inflation and that is where we could be heading if
the oil market doesn't pick up," he added.
The Stoxx Europe 600 Oil and Gas Index ended 0.3% lower, after
trading down 1.6% earlier.
Among European oil producers, Tullow Oil PLC (TLW.LN) gave up
1.3% and Spain's Repsol SA (REPYY) lost 0.9%.
Norwegian oil services company Subsea 7 SA (SUBC.OS) sank 4.4%
following a downgrade to equal weight at Morgan Stanley, and AMEC
Foster Wheeler PLC (AMFW.LN) shed 0.8%.
Other movers: Helping pull the Stoxx out of negative territory,
shares of Novartis AG (NOVN.EB) (NOVN.EB) jumped 5% after the
pharmaceutical company said its Ilaris drug had produced positive
trial results.
Imagination Technologies Group PLC (IMG.LN) soared 16%. The
company, which designs the iPhone and iPad's graphics chips, has
put itself up for sale
(http://www.marketwatch.com/story/imagination-shares-surge-16-after-putting-itself-up-for-sale-following-apple-dispute-2017-06-22)
following a battle with Apple Inc. (AAPL).
Indexes: In London, the FTSE 100 fell 0.1% to 7,439.29
(http://www.marketwatch.com/story/ftse-100-faces-third-day-of-losses-as-oil-shares-miners-struggle-2017-06-22).
France's CAC 40 index rose 0.2% to 5,281.93.
Germany's DAX 30 ended 0.2% higher at 12,794.
The euro fetched $1.1148, down from $1.1170 late Wednesday in
New York.
Brexit watch: U.K. Prime Minister Theresa May on Thursday
evening is expected to present Britain's plans for European Union
citizens living in the U.K. as part of Brexit negotiations.
Read:Brexit 1-year after vote: Here are the 5 possible scenarios
for the EU divorce
(http://www.marketwatch.com/story/brexit-one-year-after-vote-here-are-the-5-possible-scenarios-for-the-eu-divorce-2017-06-20)
May's Conservative Party is still trying to work out a
policy-support deal with the Democratic Unionist Party from
Northern Ireland, after losing its parliamentary majority in this
month's general election. U.K. Treasury chief Philip Hammond said
on BBC Radio he was confident an agreement will be made.
Data: Confidence in France's manufacturing sector declined
slightly in June
(http://www.marketwatch.com/story/french-manufacturing-confidence-edges-lower-2017-06-22),
as business leaders were less bullish about their own production
levels, said statistics agency Insee.
(END) Dow Jones Newswires
June 22, 2017 12:12 ET (16:12 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024