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Sep 24, 2018

European Markets at Close Report: European stocks dip as US-China trade tariffs kick in; Sky jumps 8.6% I CNBC
Ryan Browne, Silvia Amaro, Alexandra Gibbs

European stocks finished lower on Monday, as investors braced for the ramifications of another round of tariffs from the two major economies.
FTSE FTSE 100 7452.23 -38.00 -0.51% 500025463
DAX DAX 12355.24 -75.64 -0.61% 48968440
CAC CAC 5465.88 -28.29 -0.52% 45965848
IBEX 35 --- --- --- --- --- ---
The pan-European Stoxx 600 ended provisionally down by 0.54 percent with almost every sector in the red. Autos were the worst-performers following renewed uncertainty over U.S.-China trade relations. Monday marks the day when the latest round of tariffs — which target products from both the U.S. and China — come into effect.
Looking across European stocks, Sky led the gains up by 8.6 percent. This followed news that the U.K. broadcaster recommended its shareholders accept an offer from Comcast for a $40 billion takeover. "As the price of the Comcast Offer is materially superior, it is in the best interests of all Sky shareholders to accept the Comcast Offer," the company said.
Shares of Randgold Resources also rose nearly 6 percent after the company agreed to merge with Canadian Barrick Gold, in a deal worth $18.3 billion.
Airlines were struggling to make gains after Thomas Cook announced a profit warning. The FTSE 250 company was down more than 20 percent. Tui dropped 4 percent and Ryanair was down by about 2 percent.
Meanwhile, BMW and a number of other German automakers fell after representatives of auto companies failed to reach a compromise with the German government on the retrofitting of diesel vehicles. German Chancellor Angela Merkel on Monday said she would finalize a decision on diesel car retrofits on October 1. Volkswagen fell 1.4 percent, Daimler dropped 1.86 percent and BMW dropped 2.33 percent.
On Wall Street, stocks opened lower, on the back of the intensifying trade dispute between the U.S. and China. Beijing reportedly cancelled trade talks with Washington as the new round of levies took effect.

New snap election?

Meanwhile, the U.K.'s relationship with the European Union remains tense between both groups and within the British political party system itself. In the latest, the British opposition Labour party saw its leader Jeremy Corbyn state that he would support a second Brexit referendum vote if his party decided to pursue this move.
At the same time, the U.K. government has denied reports over the weekend that it was planning to call a new snap election in November. The move would be an attempt to increase support for the Prime Minister and her efforts to reach a Brexit deal with Europe.

Which sector will see the next mega-merger?

Total Votes:
Not a Scientific Survey. Results may not total 100% due to rounding.
In oil news, Saudi Arabia's oil minister rebuffed President Donald Trump's recent accusations that OPEC was trying to push crude prices higher, when speaking to journalists Sunday at the Joint Ministerial Monitoring Committee (JMMC) in Algiers.
Brent crude topped the $80 mark on Monday as the market tightened and traders looked ahead to the implementation of a second round of U.S. sanctions on Iran, scheduled to take effect in early November. Brent traded at $80.61, up 2.2 percent, while U.S. WTI traded at $71.98, up 1.7 percent.
In economic data, the Ifo Business Climate Index showed a slight slippage in September, as companies became lowered the outlooks for their business. Nonetheless, Ifo said that the Germany economy continues robust.

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