EUROPE MARKETS: France's CAC Slides As Key Macron Ally Departs, Pulling European Stocks Lower
June 21 2017 - 4:59AM
Dow Jones News
By Carla Mozee, MarketWatch
Queen's Speech in focus as U.K. government races for deal
European stocks marched lower Wednesday, as the energy sector
was dragged down by sliding oil prices and as the departure of a
key ally of President Emmanuel Macron hit French equities.
The Stoxx Europe 600 lost 0.7% at 386.97, on course for a second
straight loss. All sectors were in the red, led by financial and
technology shares.
The index tracking European oil and gas stocks was down 0.6% as
oil prices moved lower. They slid into a bear market on Tuesday
(http://www.marketwatch.com/story/oil-hovers-at-seven-month-low-as-investors-weigh-up-supply-issues-2017-06-20)
driven down by continuing worries about a global oil glut as output
cuts from the Organization of the Petroleum Exporting Countries
were offset by production rises elsewhere. An recent increase in
supply by Libya was a factor.
In the oil-producer group, Norway's Statoil ASA (STL.OS) fell
0.8%, Tullow Oil PLC (TLW.LN) lost 0.7%, and France's Total SA
(TOT) shed 0.5%.
Among energy equipment and services companies, Petrofac Ltd.
(PFC.LN) dropped 2.2% and Italy's Saipem SpA (SPM.MI) was off 1.5%,
but Subsea 7 SA (SUBC.OS) rose 3.1%.
A weekly supply update from the Energy Information
Administration is due at 10:30 a.m. Eastern Time Wednesday.
Analysts polled by S&P Global Platts expect the EIA to report a
decline of 2 million barrels in crude inventories. Late Tuesday,
the American Petroleum Institute reported a weekly decline of 2.7
million barrels in U.S. crude supplies
(http://www.marketwatch.com/story/api-data-show-a-weekly-decline-in-us-crude-supply-sources-say-2017-06-20).
France battered: France's CAC 40 index lost the most ground
among major benchmarks as it dropped 1% to 5,240.62, with just
three components moving higher.
The market was under pressure after the country's Justice
Minister François Bayrou left government Wednesday
(http://www.marketwatch.com/story/frances-justice-minister-a-key-macron-ally-quits-government-2017-06-21).
Bayrou was a key ally who rallied centrists to Macron's successful
election campaign.
Bayrou's centrist party Mouvement Démocrate, or MoDem, is in a
preliminary probe into allegations related to jobs at the European
Parliament. Bayrou was reportedly set to give a press conference
later Wednesday.
The CAC's biggest decliners were hospitality services company
Sodexo SA (SW.FR) , down 2.7%, and AXA SA (AXAHY) , 2.6% lower. But
industrials metals company ArcelorMittal SA (MT) picked up 1%.
Individual indexes: Germany's DAX 30 shed 0.3% to 12,717.03,
backing further away from Monday's record close. Spain's IBEX 35
was off 0.7% at 10,669.
In London, the FTSE 100 was down 0.3% at 7,448.24, with
financial, oil and gas and consumer-goods shares lower.
Meanwhile, the pound dropped below $1.26 before the formal
opening of parliament, when Queen Elizabeth II will set out the
government's agenda in a speech. However, Prime Minister Theresa
May's plan to form a government with the support of the Democratic
Unionist Party looked in doubt, after media reports cast doubt
(http://www.telegraph.co.uk/news/2017/06/21/theresa-mays-deputy-damian-greencasts-doubt-dup-deal/?utm_source=dlvr.it&utm_medium=twitter)
on her Conservative Party's prospects of sealing a deal with the
party from Northern Ireland.
Coverage of the Queen's Speech will begin at 11:15 a.m. London
time
(http://www.parliament.uk/business/news/2017/june/state-opening-of-parliament-2017/),
or 6:15 a.m. Eastern Time.
Stock movers: Whitbread PLC shares (WTB.LN) climbed 4.5% to top
the Stoxx 600. The parent company of the Costa Coffee and Premier
Inn hotels chain posted a rise of 2.9% in fiscal first-quarter
comparable sales
(http://www.marketwatch.com/story/whitbread-quarterly-same-store-sales-rise-2017-06-21).
Total sales rose 7.6%.
Provident Financial PLC (PFG.LN) sank 16% after a warning about
adjusted profit from the credit company.
(END) Dow Jones Newswires
June 21, 2017 05:44 ET (09:44 GMT)
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