EUROPE MARKETS: European Stocks Suffer For 2nd Day On Doubts About Trump Agenda
May 18 2017 - 4:50AM
Dow Jones News
By Carla Mozee, MarketWatch
Fiat shares fall on prospect of U.S. civil suit
European stocks dropped Thursday, retreating for a second
session, as continuing U.S. political turmoil cast doubt on whether
President Donald Trump's pro-economic growth policies will become
reality.
The Stoxx Europe 600 index ) lost 0.6% to 388.87. No sector
traded higher, with industrial, oil and gas and financial shares
faring the worst. The move builds on Wednesday's slide of 1.2% ,
which marked the benchmark's biggest one-day percentage loss since
Sept. 26, according to FactSet data.
Investors on Wednesday began fleeing assets perceived as
riskier, such as stocks, after a report that Trump had asked James
Comey, then director of the Federal Bureau of Investigation, to
halt a probe 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).
On Wall Street, the S&P 500 index and the Dow Jones Industrial
Average logged their worst declines since Sept. 9.
Read:Here's how impeachment works -- and why Trump is safe for
now
(http://www.marketwatch.com/story/heres-how-impeachment-works---and-why-trump-is-safe-for-now-2017-05-17)
"With optimism rapidly diminishing over Trump's proposed fiscal
spending and his administration coming under increasing pressure,
the Trump rally seems to be a theme of the past," said FXTM
research analyst Lukman Otunuga, in a note.
"Stock markets may be in store for further punishment moving
forward, as political turmoil in the US and ongoing geopolitical
tensions are adding to the mounting uncertainty over Trump," he
said.
European bank shares were struggling on concerns the Trump
administration won't be able to push through looser regulatory
rules for the financial industry. The Stoxx Europe 600 Bank flopped
down 0.9%.
Pressure on shares of European exporters also came from strength
in the euro, which this week rose above $1.11 for the first time
since November. The shared currency on Thursday bought $1.1130,
compared with $1.1159 late Wednesday.
Individual indexes: Germany's DAX 30 , which has notched record
closing highs in recent sessions, fell 0.5% to 12,569.92.
In London, the FTSE 100 dropped 1.1% to 7,422.30. The index came
under further pressure as the pound rose above $1.30 for the first
time since September, after U.K. retail sales burst past
expectations.
France's CAC 40 declined 0.6% to 5,285.54, while Spain's IBEX 35
moved down 1.1% to 10,665.10.
Stock movers: Fiat Chrysler Automobiles NV (FCA.MI) shares fell
5.1% after reports that the U.S. Justice Department plans to file a
civil lawsuit
(http://www.marketwatch.com/story/fiat-chryslers-stock-falls-5-after-report-of-possible-doj-suit-2017-05-18)
against the auto maker over excess diesel emissions, if no
agreement is reached.
Altice NV (ATC.AE) shares lost 2.1%. The Dutch telecom company
broke European Union rules by carrying out its acquisition of PT
Portugal before notifying or getting approval from regulators, the
EU's competition watchdog said in a statement Thursday.
(http://www.marketwatch.com/story/altices-stock-falls-after-eu-cries-foul-on-pt-portugal-buyout-2017-05-18)
Economic data: France's unemployment rate dropped to 9.6%, a
five-year low
(http://www.marketwatch.com/story/french-unemployment-rate-falls-to-5-year-low-2017-05-18),
as the job market improved for young people.
U.K. retail sales rebounded
(http://www.marketwatch.com/story/uk-retail-sales-rebound-overshoot-expectations-2017-05-18)
in April, following a steep quarterly decline in the first three
months of the year. Retail sales grew by 2.3% on the month,
significantly more than the 1.5% growth seen in a Wall Street
Journal poll.
(END) Dow Jones Newswires
May 18, 2017 05:35 ET (09:35 GMT)
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