By Caixin Online
German stocks were losing the most among European equity markets
Friday, taking the brunt of blows from worries about a potential
trade war now that U.S. steel tariffs will be coming into effect
later this month.
As well, data showed German exports dropped at the start of
2018. European stocks markets largely swayed between small gains
and losses before the release of the closely watched U.S. monthly
jobs report on Friday, but regional equity markets were on course
to rise for the week.
How are markets moving?
Germany's DAX 30 index fell 0.5% to 12,298.65, eating into
Thursday's gain of 0.9%. But the index was due for a 3.3% weekly
advance, which could be the best week since late April 2017.
The Stoxx Europe 600 index was down 0.1% at 376.38 but has been
darting in and out of positive territory during the session. On
Thursday, the index jumped 1.1%
(http://www.marketwatch.com/story/european-stocks-rise-for-4th-day-in-a-row-as-ecb-steals-focus-from-us-tariffs-2018-03-08).
For the week, the benchmark was on track to rise 2.5%, according to
FactSet data.
France's CAC 40 index was down 0.2% to 5,244.25 but Spain's IBEX
35 edged up 0.1% to 9,659.10. The U.K.'s FTSE 100 index was flat at
7,201.67.
The euro bought $1.2308, little changed from $1.2313 late
Thursday in New York.
What's driving the market?
Friday's trading session got underway with U.S. President Donald
Trump late Thursday signing a decree to impose tariffs of 25% on
imported steel and 10% on aluminum
(http://www.marketwatch.com/story/here-are-the-details-on-trumps-tariffs-on-steel-and-aluminum-2018-03-08),
effective March 23.
European Union Trade Commissioner Cecilia Malmstrom aid the bloc
is working on being excluded from the tariffs, at a forum in
Brussels on Friday.
"We hope we can get confirmation that the EU is excluded from
this," she said, adding that while the EU shares concerns of
overcapacity in the steel markets, "this isn't the right way" to
deal with the issue.
Read:EU lines up its salvos to fight Trump tariffs
(http://www.marketwatch.com/story/eu-lines-up-its-salvos-to-fight-trump-tariffs-2018-03-08)
See:ECB's Draghi: 'If you put tariffs against your allies, one
wonders who the enemies are'
(http://www.marketwatch.com/story/ecbs-mario-draghi-if-you-put-tariffs-against-your-allies-one-wonders-who-the-enemies-are-2018-03-08)
Canada and Mexico were exempted from the levies as the U.S.
attempts to renegotiate the North American Free Trade Agreement,
while other countries are negotiating exclusions.
And check out: EU leader responds to Trump's tariff plan: 'We
can also do stupid'
(http://www.marketwatch.com/story/eu-leader-responds-to-trumps-tariff-plan-we-can-also-do-stupid-2018-03-07)
In other geopolitical developments, Trump accepted an invitation
to meet North Korean leader Kim Jong Un
(http://www.marketwatch.com/story/trump-accepts-invitation-to-meet-north-korean-leader-kim-jong-un-2018-03-08),
the White House said late Thursday. South Korea's national-security
adviser, Chung Eui-yong, said Kim reaffirmed that he was prepared
to suspend nuclear and missile tests while North Korea engages in
talks on the denuclearization of the Korean Peninsula.
The euro was largely steady against the dollar, but could see
more action after the release of the U.S. nonfarm payrolls report
for February
(http://www.marketwatch.com/story/are-workers-really-getting-a-raise-wages-are-focus-of-upcoming-us-jobs-report-2018-03-08),
due at 1:30 p.m. London time, or 8:30 a.m. Eastern Time. Wage
growth will be in focus. Analysts are expecting the U.S. added
220,000 new jobs last month.
What strategists are saying
"The North Korea story appears to have had a more positive
effect on Asia markets as we head into the weekend, with a strong
finish across the board. This shouldn't be too much of a surprise
given their geographical proximity, however, European markets don't
appear to be too enthused one way or the other," said Michael
Hewson, chief market analyst at CMC Markets UK, in an note.
"With having to absorb the Trump tariffs story and the various
carve-outs, as well as the unexpected announcement of a potential
historic meeting between the U.S. President and North Korea's Kim
Jong Un, investors have a lot to contend with ahead of the weekend,
as investors try and stay one step ahead of the U.S. president's
predilection for unpredictability," he added.
Which stocks were in focus?
In Frankfurt, auto makers lost ground in the wake of Trump's
tariff order. Last week, Trump threatened to impose a tax on cars
if the EU were to retaliate
(http://www.marketwatch.com/story/trump-threatens-tax-on-cars-if-eu-retaliates-to-us-steel-and-aluminum-tariffs-2018-03-03)
to his planned tariffs. Shares of BMW AG (BMW.XE) fell 0.6%,
Daimler AG (DAI.XE) shed 0.4% and Volkswagen (VOW.XE) (VOW.XE) fell
0.8%.
Shares of steel maker ArcelorMittal SA (MT) fell 1.5%.
Inmarsat PLC (ISAT.LN) fell 7% after the U.K. satellite operator
slashed its final dividend
(http://www.marketwatch.com/story/inmarsat-2017-profit-drops-warns-on-ligado-2018-03-09)
to 12 U.S. cents a share and warned that cash payments from its
collaboration with Ligado Networks LLC beyond the end of 2018 are
in doubt.
Topping the Stoxx 600, GVC Holdings PLC (GVC.LN) climbed 3.7% as
the online gambling company said its pretax loss for 2017 narrowed
(http://www.marketwatch.com/story/gvc-2017-loss-narrows-on-higher-revenue-margins-2018-03-09)on
the back of higher gaming revenue and margins.
Economic data
German exports fell by 0.5%
(http://www.marketwatch.com/story/german-exports-fall-at-fastest-rate-since-june-2018-03-09)
in seasonally adjusted terms, the sharpest decline in exports since
last June, said the Destatis statistics agency.
French industrial production fell sharply
(http://www.marketwatch.com/story/french-industrial-production-falls-unexpectedly-2018-03-09)
and unexpectedly in January, by 2%, on declines in energy and
manufacturing output, statistics agency Insee said Friday.
(END) Dow Jones Newswires
March 09, 2018 05:35 ET (10:35 GMT)
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