EUROPE MARKETS: European Stocks Head Toward 2nd-straight Loss As Euro Pushes Higher
November 23 2017 - 4:12AM
Dow Jones News
By Carla Mozee, MarketWatch
Altice reportedly considers selling one of its units
European stocks drove toward a second consecutive loss Thursday,
with euro strength acting as a headwind and as investors assessed
the worst selloff in Chinese equities in about three months.
New data arriving Thursday indicated a pickup in Germany
economic activity.
How key gauges are moving: The Stoxx Europe 600 fell 0.4% to
385.63, with only the consumer goods sector printing a small gain.
Utility and commodity stocks fell the most. On Wednesday, the
benchmark fell 0.3%
(http://www.marketwatch.com/story/ftse-100-on-course-for-3rd-straight-gain-with-uk-budget-on-deck-2017-11-22),
snapping a two-day run of gains.
Volumes are expected to be lower as U.S. markets are closed for
the Thanksgiving Day holiday.
In Frankfurt, the DAX 30 index shed 0.1% to 12,999.59 following
Wednesday's slide of 1.2%. In Paris, the CAC 40 turned up 0.1% to
5,360.13.
In London, the FTSE 100 index fell 0.5% to 7,385.63, and in
Madrid, the IBEX 35 picked up 0.3% to 10,444.40.
The euro bought $1.1841, up from $1.1824 late Wednesday in New
York.
What's driving markets: Equity investors stepped into the
session with the euro kicked higher as the U.S. dollar was yanked
to a four-week low on Wednesday. Those moves came as minutes
released from the Federal Reserve's meeting earlier this month
showed policy makers were concerned about persistently low
inflation levels, and that cast doubt in the market about the pace
of rate increases in 2018.
Euro strength can hurt shares of European exporters, as a
stronger euro can make products from European companies more
expensive to purchase for their overseas clients who use other
currencies.
Minutes from the European Central Bank's meeting in October will
be released at 12:30 p.m. London time, 7:30 a.m. Eastern Time.
The Stoxx Europe 600 Basic Resources Index was down 0.2%. Mining
shares, which can be sensitive to developments in China, struggled
in European trade in the wake of a rout in Chinese equities that
left the Shanghai Composite and the Shenzhen Composite down 2.3%
and 2.9%, respectively.
The selloff was sparked as Beijing took steps to halt the
proliferation of small online lenders
(http://www.marketwatch.com/story/chinese-stocks-fall-other-asian-markets-mostly-quiet-2017-11-22)
after saying it plans to streamline oversight of asset-management
products sold by financial institutions.
What strategists are saying: "European markets are trading lower
despite the fact that the German GDP year-over-year number matched
the forecast of 2.3%. The German export number, the backbone of the
country, has endorsed once again that it is the primary driver of
the GDP growth," said Naeem Aslam, chief market analyst, in a
note.
Stock movers: Centrica PLC shares (CNA.LN) plunged 17% to the
bottom of the Stoxx 600, after the parent company of British Gas
warned that its energy supply businesses have had a disappointing
second half
(http://www.marketwatch.com/story/centrica-says-on-track-to-hit-2017-targets-2017-11-23).
It also gave a full-year adjusted earnings outlook that was below
the market consensus.
Altice NV shares (ATC.AE) jumped 5.9% following a Financial
Times report that the French telecommunications company is seeking
to sell its telecom network in the Dominican Republic.
Remy Cointreau SA (RCO.FR) fell 4% even as the company said
first-half net profit rose to EUR89.2 million ($105 million) on
stronger sales of its Remy Martin cognac
(http://www.marketwatch.com/story/remy-cointreaus-earnings-lifted-by-cognac-sales-2017-11-23).
Economic data: German economy picked up speed in the third
quarter, propelled by exports and corporate investments, the
Destatis statistics agency said Thursday. Gross domestic product
grew at a quarter-to-quarter rate of 0.8%
(http://www.marketwatch.com/story/german-economy-picked-up-speed-in-3q-2017-11-23)
in the three months through September, or 3.3% in annualized terms,
confirming preliminary growth estimates.
(END) Dow Jones Newswires
November 23, 2017 04:57 ET (09:57 GMT)
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