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Aug 8, 2018

European Markets at Close Report: European stocks close mixed on earnings, new trade tariffs; Lanxess up 5.6% I CNBC

By Justina Crabtree, Silvia Amaro, Ryan Browne

European stocks closed mixed on Wednesday as investors kept a close eye on corporate earnings and trade tension.
FTSE FTSE 7769.41 50.93 0.66% 379458725
DAX DAX 12639.06 -9.13 -0.07% 66297968
CAC CAC 5505.10 -16.21 -0.29% 35506168
IBEX 35 --- --- --- --- --- ---
The pan-European Stoxx 600 was 0.3 percent lower during mid-afternoon deals.
Autos and technology were the two top performing sectors, both trading around 0.4 percent above the flat line.
Healthcare stocks were the worst performing in Europe, dragged down by H. Lundbeck. The Danish pharmaceutical company was trading over 13 percent lower after announcing plans to move into China. Meanwhile, Novo Nordisk was down 5.5 percent after posting lower-than-expected second-quarter sales.
Looking at individual stocks, Germany's Lanxess topped the Stoxx 600. The chemicals company was trading 5.6 percent higher mid-afternoon following news that it is selling its 50 percent stake in rubber-maker Arlanxeo to Saudi Aramco in a cash deal worth 1.4 billion euros ($1.6 billion).
Dutch lender ABN AMRO was trading 3 percent higher mid-afternoon after reporting stronger-than-expected profits for the second quarter of the year. Meanwhile tire maker Nokian Renkaat was trading 1.7 percent higher mid-afternoon after reporting results that beat analysts' forecasts. The Finnish company had pushed 3 percent above the flat line earlier on in the day.
At the other end of the spectrum, Dutch retailer Ahold Delhaize fell over 2 percent after reporting a decline in second-quarter sales.

U.S. stocks lower on new China tariffs

Stateside, stocks opened lower on Wednesday after China unveiled new tariffs on U.S. goods. Disney shares also contributed to the broader market's decline.
The Dow Jones Industrial Average slipped 12 points, with Disney as the biggest laggard. The S&P 500 fell 0.1 percent with utilities underperforming. The Nasdaq Composite traded just below breakeven.
Investors are digesting developments overnight after the U.S. said it will impose further tariffs on Chinese goods starting August 23, 2018. It is expected that 25 percent import taxes are going to applied to about $16 billion of annual imports. A first set of tariffs, on $34 billion worth of goods, went into effect in July.
In other corporate news, 21st Century Fox filed paperwork for its proposed £14 ($18) per share takeover of British broadcaster Sky on Tuesday, although it is still short of Comcast's £14.75 per share bid for the coveted media asset.
Elsewhere, the pound hit fresh lows on Wednesday with traders citing increased concerns that the U.K. might leave the EU without a formal trade agreement as the main reason for the sell-off.

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