EUROPE MARKETS: European Stocks Drop The Most In About 9 Months As Trump Worries Rattle
May 17 2017 - 11:12AM
Dow Jones News
By Carla Mozee and Sara Sjolin, MarketWatch
Euro rises above $1.11 for first time in six months
European stocks moved sharply lower on Wednesday, with investors
rattled by the latest political turmoil in the U.S. that is feared
to put President Donald Trump's pro-growth agenda at risk.
Concerns grew after the New York Times reported that Trump in
February asked then-director the Federal Bureau of Investigation,
James Comey to stop his investigation into links between Trump's
associates and Russian officials
(http://www.marketwatch.com/story/us-stock-futures-under-pressure-amid-fresh-concerns-over-trump-2017-05-17).
The Stoxx Europe 600 index ) ended Wednesday 1.2% lower at
391.14, marking the biggest one-day percentage loss since Sept. 26,
according to FactSet data.
In the U.S., stocks were also a sharply lower
(http://www.marketwatch.com/story/us-stock-futures-slide-as-concerns-over-trump-grow-2017-05-17),
with the Dow Jones Industrial Average on track for the worst day
since September last year.
(http://www.marketwatch.com/story/us-stock-futures-slide-as-concerns-over-trump-grow-2017-05-17)"Given
that the 'Trump trade' is one of the main reasons the market has
been able to break records of late, it is understandable that the
scandal engulfing the U.S. government would be of some concern to
investors," said Spreadex financial analyst Connor Campbell, in a
note.
"That's because this crisis will likely prevent Trump from
pushing through the very policies--like his huge infrastructure
plans and generous tax cuts--that fueled much of the recent rally
any time soon, undermining the basis for the current highs."
The euro rose to $1.1138, as the U.S. dollar lost ground
(http://www.marketwatch.com/story/dollar-edges-down-as-analysts-blame-trump-worries-2017-05-17)
against major rivals. The euro hasn't traded above $1.11 since
around the time of the November U.S. presidential election.
Individual indexes: Germany's DAX 30 , which has notched record
closing highs in recent sessions, ended down 1.4% at 12,631.61 for
its biggest loss since early November last year.
France's CAC 40 declined 1.6% to 5,317.89.
In London, the FTSE 100 darted between small gains and losses
(http://www.marketwatch.com/story/ftse-100-steady-ahead-of-jobs-data-but-trump-worries-limit-gains-2017-05-17)
for most of the session, but ended down 0.3% at 7,503.47. Italy's
FTSE MIB dropped 2.3% to 21,283.72, and Spain's IBEX 35 moved down
1.8% to 10,786.10.
Stock movers: Banks posted some of the biggest losses in
Wednesday's selloff. Shares of Deutsche Bank AG (DBK.XE) (DBK.XE)
fell 3.5%, Banco Popular Español SA (POP.MC) gave up 4.2% and BNP
Paribas SA (BNP.FR) lost 3.1%.
Tullow Oil PLC (TLW.LN) shares climbed 0.9% after the oil
producer said it struck oil at a well in Kenya's South Lockihar
Basin.
Thyssenkrupp AG shares (TKA.XE) jumped 3.1% after Tata Steel
Ltd. (500470.BY) moved closer to reaching a final agreement over
changes to its U.K. pension liabilities. "As we view a solution on
Tata's pensions as a key step in the process towards a possible
deal with Thyssen, we believe this has been good news," wrote
Deutsche Bank analyst Bastian Synagowitz.
British Land shares (BLND.LN) were pulled down 3.3% after the
U.K. property developer posted a decline in the net value a share
of its assets, pressured by falling residential, retail and office
real-estate prices.
(http://www.marketwatch.com/story/british-land-profit-down-as-property-values-fall-2017-05-17)
Ubisoft Entertainment SA (UBI.FR) shares fell 3.6% although the
maker of the coming "Far Cry 5" videogame posted a rise in
full-year profit.
(END) Dow Jones Newswires
May 17, 2017 11:57 ET (15:57 GMT)
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