EUROPE MARKETS: Europe Stocks Close Modestly Higher, Driven By Earnings
November 08 2018 - 2:31PM
Dow Jones News
By Barbara Kollmeyer and Anneken Tappe, MarketWatch
Sodexo, Commerbank, Société Générale end higher on results
European stocks ended Thursday slightly higher after a mixed
trading session, supported by banks such as Commerzbank AG and
Société Générale SA, which climbed after well-received earnings
reports.
What are markets doing?
The Stoxx Europe 600 closed 0.2% higher at 367.08, adding on
from Wednesday's gain of 1.1%
(http://www.marketwatch.com/story/europe-stocks-hop-on-global-rally-driven-by-relief-over-us-midterms-2018-11-07).
The U.K.'s FTSE 100 gained 0.3% to close at 7,140.68.
Yet it wasn't a good day for European stocks through and
through. Germany's DAX 30 finished 0.5% lower at 11,527.32, while
France's CAC 40 slipped to close 0.1% lower at 5,131.45.
Italy's FTSE MIB Italy index closed 0.6% lower at 19,429.14.
The euro and British pound spent much of Thursday trading in a
tight range but sold off as the U.S. dollar strengthened following
the Federal Reserve's policy statement.
One euro last bought $1.1358, down from $1.1488, while sterling
fetched $1.3050 from $1.1326 late Wednesday in New York.
What is driving the market?
It was a mixed day in European stocks, as investors digested
data showing that German exports fell unexpectedly, while a report
from the European Commission also weighed some on sentiment after
it said growth in the eurozone would slow from 2.1% in 2018 to 1.9%
in 2019 and then 1.7% in 2020, weighed by trade worries, higher oil
prices and general uncertainty.
Meanwhile, corporate earnings helped support stocks.
Investors were also looking ahead to the Federal Reserve's
monetary policy decision, which came in after the European close
and yielded no change. The U.S. central bank indicated it was going
to continue gradual interest rate hikes. A 25 basis point hike is
expected in December.
What are strategists saying?
"It appears that investors are getting nervy ahead of the
evening's Fed statement. The central bank is expected to hold
steady despite October's bloody trading and the latest political
reshuffle in the U.S., leaving an interest rate rise in December
very much be on the cards," said Connor Campbell, financial analyst
at Spreadex.
Stock movers
Commerzbank AG (CBK.XE) shares closed more than 4% higher, after
posting an earnings decline, but backed its 2018 outlook
(http://www.marketwatch.com/story/commerzbank-earnings-decline-backs-2018-outlook-2018-11-08).
Shares of Société Générale (GLE.FR) ended 2.1% higher after the
French bank posted a 32% profit rise.
(http://www.marketwatch.com/story/societe-generale-net-profit-rises-32-2018-11-08)
(http://www.marketwatch.com/story/societe-generale-net-profit-rises-32-2018-11-08)Rheinmetall
AG (RHM.XE) rose 4.4% after strong earnings and adjusted guidance
(http://www.marketwatch.com/story/rheinmetall-earnings-up-adjusts-2018-guidance-2018-11-08).
Coca-Cola HBC AG finished 4.2% higher after the bottling group
said it remains upbeat on growth and posted a 2.6% revenue rise.
(http://www.marketwatch.com/story/coca-cola-revenue-up-confident-on-growth-2018-11-08)
(http://www.marketwatch.com/story/societe-generale-net-profit-rises-32-2018-11-08)
(END) Dow Jones Newswires
November 08, 2018 15:16 ET (20:16 GMT)
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