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Jan 4, 2017

European Markets at Close Report on January 4, 2016: European Markets Close Lower; Euro Zone Inflation Hits Three-Year High; Next Down 14%
Silvia Amaro, Sam Meredith
European markets closed in negative territory on Wednesday despite euro zone inflation figures hitting a three-year high.


FTSE FTSE 7173.90
-3.99 -0.06% 477320716
DAX DAX 11560.49
-23.75 -0.21% 64254416
CAC CAC 4887.94
-11.39 -0.23% 55774322
IBEX 35 IBEX 35 Idx 9442.00
-52.70 -0.56% 158813873

The pan-European Euro Stoxx provisionally ended 0.25 percent lower on Wednesday with most sectors down on the day. The U.K.'s FTSE 100 edged slightly above the flat line at the close while the French CAC and German DAX bourses were 0.13 percent and 0.08 percent down respectively.
Retail stocks were among the worst performing on Wednesday, off by more than 1.4 percent at the close. The U.K.'s retailer Next hit the bottom of the European index closing down by more than 14 percent. Share prices suffered after the fashion and housewares store announced it would be cutting profit guidance for the financial year and referenced "exceptional" levels of uncertainty.
On the other hand, banking stocks were up for a third consecutive day, eking out gains of 0.36 percent. The newly emerged Italian Banco BMP was 1.12 percent higher on Wednesday.
Meanwhile, in the U.S., the Dow Jones industrial average continued higher on Wednesday as investors cautiously awaited a potential breakthrough the 20,000 threshold.
The latest flash euro zone inflation figures released Wednesday morning showed an increase of 0.5 percent increase in consumer prices. The yearly rate moved from 0.6 percent in November to 1.1 percent in December.
The Bank of England said Wednesday that consumer credit grew at its fastest pace since 2005 in the month of November.
The new year has started with the release of upbeat economic data, boosting global equities. The U.S. dollar nearly reached a 14-month high on Wednesday morning.

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Michelin shares were down by 2.3 percent after Societe Generale downgraded the stock from buy to hold. Volkswagenwas also down by more than 1.9 percent. Lawyers in Germany filed the first lawsuit looking for compensation for consumers after the emissions scandal, the Wall Street Journal reported.
The European Commission has extended its deadline for a decision over ChemChina's proposal to buy the Swiss pesticide firm Syngenta. Shares of the latter were slightly higher.
Meanwhile, Italian lender Intensa Sanpaolo has proposed plans to loan 5.2 billion euros ($5.4 billion) to Glencore and Qatar's sovereign wealth fund, who are purchasing a stake in Russian oil firm Rosnef. The shares of the bank were up by more than 1.7 percent.