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Jan 29, 2017

European Markets at Close Report on January 27, 2017: European Stocks Close Lower as Banks Rally Loses Steam

marketwatch.com
 
Carla Mozee, Sara Sjolin
European stocks fell from a 13-year high on Friday, closing in negative territory as UBS Group PLC lead banking shares lower after a financial update.

The Stoxx Europe 600 index SXXP, -0.30%  shed 0.3% to 366.38, trimming its weekly gain to 1.1%.
European stocks caught upside momentum earlier this week as banking shares advanced and as a leap in U.S. stocks pushed the Dow Jones Industrial Average DJIA, -0.04%  above 20,000 for the first time ever.
See: Does Trump rally face ‘one last meltup’ after Dow 20,000?
And: The 10 cheapest, fastest-growing and most beloved Dow stocks
The Stoxx Europe 600 Banks Index FX7, -0.82%  ended the week up 2.3%, its first weekly advance in three weeks.
On Friday, however, the index dropped 0.8%, in part as UBS UBSG, -4.52% UBS, -3.61%  slumped 4.5%.
The Swiss bank said total operating income at its wealth management unit fell 5% in the fourth quarter compared with the same period a year earlier. While net profit fell to 738 million Swiss francs ($737.26 million), that result was better than analyst had expected.
Among other banks falling, shares of UniCredit SpA UCG, -5.17%  slid 5.2% and Commerzbank AG CBK, +0.16%  dropped 0.9%.
On a more upbeat note in the sector, Banco de Sabadell SA SAB, +2.05%   rose 2.1% as the Spanish bank said fourth-quarter net profit fell 51%, hurt by higher provisions to cover the cost of court-ordered reimbursements to mortgage borrowers.
Read: From unloved to favorite: Why European bank earnings are set to cheer investors