EUROPE MARKETS: DAX Leads European Stocks To Higher Close, Powered By Utilities Deal
March 12 2018 - 1:46PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Stoxx Europe 600 rises for 6th straight day
European stocks notched a sixth consecutive win Monday, closing
higher along with other global markets after the U.S. jobs report
highlighted the health of the world's largest economy.
European markets also got a boost from German utility stocks
after a complex deal within the industry was reached over the
weekend.
How markets are moving
The Stoxx Europe 600 index rose 0.3% to end at 379.20. On
Friday, the pan-European index closed 0.4%
(http://www.marketwatch.com/story/german-stocks-fall-as-exports-trump-tariffs-bite-as-european-equities-seesaw-2018-03-09)
higher, and that allowed the benchmark to end last week up by
3.1%.
Germany's DAX 30 index surged 0.6% to finish at 12,418.39, while
France's CAC 40 index was up less than 0.1% to close at
5,276.71.
Bucking the positive trend, the U.K.'s FTSE 100 index
(http://www.marketwatch.com/story/ftse-100-struggles-to-keep-grip-on-gains-2018-03-12)
dipped 0.1% to end at 7,214.76.
The euro bought $1.2317, up from $1.2307 late Friday in New
York.
What is driving the market
European stocks built on Friday's advance, when global stock
markets rose after the February nonfarm-payrolls report from the
U.S.
The report showed the world's largest economy added more jobs
than expected
(http://www.marketwatch.com/story/us-adds-313000-jobs-in-february-in-biggest-gain-in-a-year-and-a-half-2018-03-09),
but wage growth fell shorts of forecasts. That signaled a healthy
U.S. economy but eased fears that wages would add to inflationary
pressures.
Asian stock markets finished higher Monday, while U.S. stocks
(http://www.marketwatch.com/story/us-stock-futures-higher-with-wall-street-set-to-extend-last-weeks-gains-2018-03-12)
were mixed about midway through their session.
But mining stocks in Europe struggled after U.S. President
Donald Trump's order last week to impose protectionist tariffs of
25% for steel and 10% for aluminum. European Union officials were
still working on landing an exemption from the levies. Mexico,
Canada and Australia have been exempted.
What strategists are saying
"Global markets continue to advance after Friday's U.S.
employment numbers effectively gave the green light to investors to
buy equities," said Rebecca O'Keeffe, head of investment at
Interactive Investor, in a note.
"Confirmation that there is a resurgence in the number of
Americans joining the labor force, increasing the participation
rate, is a huge boost to U.S. production prospects and growth
without the downside risk of wage inflation. Not too hot, not too
cold; Goldilocks appears to be alive and well," she said.
Stocks in focus
Renewable energy Innogy SE (IGY.XE) rallied 12% after E. ON SE
said Sunday it has agreed in principle to acquire RWE AG's 76.8%
stake in Innogy
(http://www.marketwatch.com/story/german-energy-titans-eon-rwe-swap-assets-2018-03-12).
The move would leave E. ON focused on energy networks and
consumer-related operations. RWE shares (RWE.XE) leapt 9.2%, and E.
ON (EONGY) moved up 5.4%.
GKN (GKN.LN) shares fell 2.5%, giving up an earlier gain that
came after Melrose Industries (MRO.LN) lifted its purchase offer to
8.1 billion pounds
(http://www.marketwatch.com/story/melrose-raises-gkn-offer-to-81-billion-2018-03-12)
($11.2 billion), but said it won't raise the amount again "under
any circumstances." GKN, which has spurned Melrose's previous bids,
said Friday it's merging its driveline business with Dana Inc.
(DAN) in a deal worth $6.1 billion.
Just Eat PLC (JE.LN) shares dropped 0.9% after Deutsche Bank
downgraded its rating of the food-delivery company to sell from
hold.
Check out:Why Just Eat's stock needs to digest its gains
(http://www.marketwatch.com/story/these-food-delivery-stocks-have-served-up-tasty-gains-heres-how-to-play-them-2018-01-08)
Among metals producers, ArcelorMittal SA (MT) declined 0.7%, and
steel tubes maker Tenaris SA (TEN.MI) fell 1.5%. Iron ore producer
Rio Tinto PLC (RIO) shed 0.4%, while Glencore PLC (GLEN.LN) lost
0.2%.
(END) Dow Jones Newswires
March 12, 2018 14:31 ET (18:31 GMT)
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