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Aug 10, 2018

European Markets at Close Report: Europe markets close lower on Turkey concerns; Novozymes down I CNBC


Justina Crabtree, Silvia Amaro, Ryan Browne


European stocks closed lower on Friday as investors reacted to corporate earnings, fresh turmoil in Turkey and the ongoing trade war between the U.S. and China.
The pan-European Stoxx 600 was trading over 1 percent below the flat line, with banks and basic resources showing the steepest falls. Both sectors were down over 2 percent during mid-afternoon deals.
Negative trade came as the euro dropped sharply against the dollar, following reports that the European Central Bank (ECB) is concerned over the impact of a weak Turkish lira on European lenders.
TheFinancial Times said that Spain's BBVA, Italy's UniCredit, and France's BNP Paribas could be particularly impacted by the ongoing depreciation of the lira.
On the earnings front, Novozymes shares were down over 2 percent after the biotech firm missed expectations with its second-quarter results. Meanwhile, budget carrier Ryanair is facing flight cancellations across Europe as pilots strike in Ireland, Germany, Belgium, Sweden and the Netherlands. Shares were down nearly 4 percent mid-afternoon.
Elsewhere, Sports Direct has bought all the U.K. stores, stock and brand of House of Fraser. The deal cost $115 million. Shares of Sports Direct fell slightly on the news.

U.S. stocks hit by lira drop

Stocks fell on Friday as geopolitical concerns pushed the Turkish lira to a record low against the dollar.
The Dow Jones Industrial Average dropped more than 100 points as Intel declined 3.3 percent. The S&P 500 fell 0.6 percent as financials and tech lagged. The Nasdaq Composite also pulled back 0.6 percent.
Traders have remained on edge after China matched the most recent round of U.S. tariffs with 25 percent levies of its own, targeting $16 billion worth of American goods. Meanwhile, Japanese gross domestic product (GDP) figures showed better-than-expected growth in the second quarter, aided by strong household and business spending.
Gross domestic product (GDP) figures out Friday morning showed the U.K. economy growing 0.4 percent in the second-quarter of the year.
In other data, the International Energy Agency's monthly oil market report said Friday that a U.S. plan to impose targeted crude sanctions against Iran could significantly impact global supply and exhaust the world's spare oil capacity cushion.