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Asian Markets at Close Report

European Markets at Close Report

Aug 22, 2016

European Markets at Close Report, by CNBC on August 22, 2016:: Europe Ends Under Pressure as Oil Tumbles 3%; Yellen Speech



European markets closed under pressure on Monday as investors failed to shake off the sharp declines seen in both oil prices and mining stocks.

The pan-European STOXX 600 reversed earlier losses, to trade roughly flat at the close. Sectors pointed in different directions.
On the bourses front, the U.K.'s FTSE 100 was off 0.63 percent, while Germany's DAX slipped 0.6 percent. Meanwhile, France's CAC 40returned to the red, closing down 0.3 percent. The sentiment had been shifted by trade seen in the U.S., where stocks fell back into the red at Europe's close.

Crude falls

Symbol
Name
Price
 
Change
%Change
Volume
FTSEFTSE6828.51
 
-30.44-0.44%407704597
DAXDAX10508.07
 
-36.29-0.34%46827141
CACCAC4391.19
 
-9.33-0.21%51811723
IBEX 35IBEX 35 Idx8463.70
 
13.100.16%96997337
Crude futures fell as much as 3 percent during London's afternoon trade, as China ramped up its exports of refined products, U.S. producers added rigs for an eighth week running, and prospects for an increase in exports from Nigeria and Iraq surfaced; Reuters reported.
Brent and U.S. WTI were sharply lower throughout trade, last standing around $49.55 and $47.30 respectively. Oil stocks were trading mixed to lower.
Meanwhile, Europe's worst performing sector was basic resources, off over 1.5 percent as metal prices posted sharp losses, on the back of a stronger dollar. Precious metals firm, Fresnillo sank 5.8 percent as spot silver fell sharply, while GlencoreAnglo American and Antofagastawere all deep in negative territory.
ArcelorMittal was sharply lower, after its South African unit agreed to pay a 1.5 billion rand ($110 million) fine for colluding to fix steel prices, Reuters reported.

With oil gaining on speculation of a production freeze, are you:

Buying the rumor
Selling on cynicism
Looking to extract value elsewhere
VOTE
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Fed ahead

Aside from commodities, the U.S. Federal Reserve is expected to be a key area of focus for investors worldwide this week, as the central bank is set to meet later on this week at the Federal Reserve Bank of Kansas City's annual economic policy symposium at Jackson Hole, Wyoming.
During the symposium, Fed Chair Janet Yellen will speak on Friday, with investors watching closely for comments on the U.S. economy and for any indications of when the Fed may raise rates.
Several Fed officials have commented on the timing of a rate hike, while Fed Vice-Chairman Stanley Fischer said on Sunday that the U.S. central bank was near to hitting its targets for full employment and 2 percent inflation.

ChemChina gets Syngenta clearance

Looking at individual stocks, the U.S.-based Committee on Foreign Investment in the United States (CFIUS) cleared ChemChina's $43 billion takeover of Swiss agrochemical group Syngenta. The news sent Syngenta shares to the top of the STOXX 600, last standing above 11 percent.
Shares of French retail giant Carrefour were sharply higher after Bernstein raised its price target and outlook on the stock. Meanwhile,Kingspan Group rose over 7 percent, after publishing better-than-expected results for its first half of 2016.
Elsewhere, Volkswagen shares fluctuated during trade after the carmaker said 25,000 workers were affected by disruptions at six plants following a dispute with its suppliers. 
Sweden's Getinge sank over 3.5 percent, after the health care group's board of directors decided to replace Alex Myers, its president and CEO. Joacim Lindoff has been appointed the firm's acting president and CEO.
While miners dominated the bottom of the STOXX 600, U.K. housebuilders were higher during trade with Taylor WimpeyBovis HomesBellway and Persimmon all up 2 percent or more each.