EUROPE MARKETS: European Stocks Run Into The Red As Wall Street Pulls Back
February 13 2018 - 11:46AM
Dow Jones News
By Carla Mozee, MarketWatch
Advances for miners, travel companies fail to lift Stoxx 600 out
of the red
European stocks fell Tuesday, as advances for mining and travel
shares weren't enough to guide the market to a second consecutive
win.
How markets are moving
The Stoxx Europe 600 index declined by 0.6% to end at 370.58,
with the utility and telecom groups losing the most. But the basic
materials and consumer-services sectors pushed higher. On Monday,
the benchmark climbed 1.2%
(http://www.marketwatch.com/story/european-stocks-bounce-back-after-biggest-weekly-drop-in-a-year-2018-02-12),
the first win in three sessions.
Germany's DAX 30 index fell 0.7% to 12,196.50, and France's CAC
40 index moved down 0.6% to 5,109.24. The U.K.'s FTSE 100 ended
lower by 0.1% at 7,168.01.
The euro bought $1.2334, down from $1.2393 late Monday in New
York.
What's driving the market
The volatility that is shoved major stocks markets into
correction territory crept back into the European markets,
indicating that investors are still wrestling with concerns about
rising inflation and higher bond yields.
U.S. stocks climbed Monday, but that was followed up in Asia
with a loss for Japan's Nikkei Average while Hong Kong stocks
surged 1.3%. U.S. stocks fell at the open, driving the Dow Jones
Industrial Average more than 150 points intraday.
But gains for metals prices such as copper and gold helped lift
up shares of European-listed mining companies. Metals prices
denominated in dollars found strength on the back of a softening in
the U.S. dollar
(http://www.marketwatch.com/story/dollar-slides-vs-yen-as-investors-weigh-up-recent-stock-gains-2018-02-13)
.
What strategists are saying
"European markets are failing to follow through on yesterday's
bounce and a decent performance overnight in Asia," said Neil
Wilson, senior market analyst at ETX Capital, in a note. "A lack of
volume yesterday on Wall Street suggests there is not a huge amount
of interest in this recovery just yet and may be a signal that this
is not a reversal in a secondary downtrend."
Stock movers
Kering SA shares (KER.FR) fell 4% even as the French parent of
luxury goods maker Gucci posted net profit for 2017 that more than
doubled from a year earlier,
(http://www.marketwatch.com/story/kering-profit-lifted-by-gucci-yves-saint-laurent-2018-02-13)
to 1.79 billion euros ($2.20 billion).
TUI AG advanced 1.2% after the vacation services company posted
a narrower net loss of 99.6 million euros ($112.7 million) for the
first quarter and backed its full-year guidance
(http://www.marketwatch.com/story/tui-narrows-net-loss-backs-2019-guidance-2018-02-13)
In the mining group, Anglo American PLC (AAL.LN) rose 1.7% and
Glencore PLC (GLEN.LN)moved up 2.5%. But Swedish mining and
smelting company Boliden (BOL.SK) ended 1.1% following a ratings
downgrade to sell from neutral at UBS.
Economic data
In the U.K., annual inflation remained at 3% in January
(http://www.marketwatch.com/story/uk-inflation-rises-stays-above-boe-targets-2018-02-13),
compared with estimated reading of 2.9%. Inflation is well above
the Bank of England's target of 2%.
Read:A U.K. rate rise in May? Analysts digest hawkish surprise
from BOE
(http://www.marketwatch.com/story/a-uk-rate-rise-in-may-analysts-digest-hawkish-surprise-from-boe-2018-02-08)
(END) Dow Jones Newswires
February 13, 2018 12:31 ET (17:31 GMT)
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