EUROPE MARKETS: European Stocks Close Lower, As Lift From Debate Fades For French Equities
March 21 2017 - 12:26PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Akzo Nobel climbs; U.K. inflation jumps by a
faster-than-anticipated pace
European stocks finished with losses Tuesday, with French
equities surrendering gains that came after respondents in a poll
viewed center-right politician Emmanuel Macron as the winner of the
first presidential debate ahead of this spring's elections.
France's CAC 40 fell 0.2% to end at 5,002.43. That still was
better than the Stoxx Europe 600's drop of 0.5% to 375.67.
The French stock benchmark had gained in morning action, but
then a broad selloff took hold, with the major European and U.S.
equity gauges
(http://www.marketwatch.com/story/us-stock-futures-edge-up-as-nasdaq-tries-for-another-record-2017-03-21)
all down solidly as Europe's trading session came to an end.
"They aren't exactly in free fall, but the quick turn lower this
afternoon has certainly spooked an investment community that had
become accustomed, however reluctantly, to a steady, attritional
grind higher," said Chris Beauchamp, chief market analyst at IG, in
a note.
"Valuations, a sudden spike in volatility, worries about the
ongoing FBI-Trump spat and others can all be cited, but whatever
the 'real' reason, we should not get overexcited just yet,"
Beauchamp added. "Already buyers are coming in to pick up some easy
points from the S&P 500, an indication that it is still too
early to give this rally the last rites."
The Macron effect: The French poll result spurred the euro to
shoot up to a six-week high against the U.S. dollar
(http://www.marketwatch.com/story/euro-jumps-vs-dollar-hitting-6-week-high-of-108-after-french-presidential-debate-2017-03-21).
The euro was buying $1.0816, trading around its highest since
early February, compared with $1.0741 late Monday in New York.
The moves came after an Elabe poll
(https://twitter.com/elabe_fr/status/843978193161932800) showed 29%
of viewers who watched Monday's night debate thought Macron was the
most convincing candidate
(http://www.marketwatch.com/story/frances-presidential-upstart-macron-clashes-with-le-pen-fillon-in-tv-debate-2017-03-21)
to become the next president. Far-right National Front party leader
Marine Le Pen was favored by 19% of viewers and conservative
François Fillon landed 20% approval. Many investors are concerned
about Le Pen as she wants France to leave the European Union and
ditch the euro.
"The fight between populism and globalism was live in
yesterday's French presidential debate. The [euro] declared that
centrist and former investment banker, Emmanuel Macron, won this
round," said FXTM chief market strategist Hussein Sayed, in a
note.
"However, I suggest not to jump into conclusions given that 40%
of voters have not decided whom to back yet, and we already learned
a lesson from the Brexit vote and U.S. presidential elections," he
added.
See:France ETF rises in heavy volume after presidential debate
(http://www.marketwatch.com/story/france-etf-rises-on-heavy-volume-after-first-presidential-debate-2017-03-21)
Other national indexes: Germany's DAX 30 index finished down
0.8% at 11,962.13. The U.K.'s FTSE 100 fell 0.7% to end at 7,378.34
(http://www.marketwatch.com/story/ftse-100-edges-up-with-banks-higher-ahead-of-inflation-data-2017-03-21),
turning lower as the pound jumped after U.K. inflation rose a
faster-than-expected rate of 2.3% in February.
Movers: Akzo Nobel NV (AKZOY) (AKZOY) closed 2% higher as PPG
Industries Inc. (PPG) is said to be preparing another bid for the
Dutch paints and chemicals company
(http://www.marketwatch.com/story/ppg-prepares-new-bid-for-akzo-nobel-after-first-offer-failed-bloomberg-2017-03-21)
after its first attempt failed earlier in March, according to
Bloomberg.
(END) Dow Jones Newswires
March 21, 2017 13:11 ET (17:11 GMT)
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