Showing posts with label Europe Markets Closing Report. Show all posts
Showing posts with label Europe Markets Closing Report. Show all posts

Sep 23, 2019

Europe I Europe Markets Closing Report: European stocks fall close lower as weak German data rattles markets; Thomas Cook collapses

Sam Meredith, Ryan Browne



European shares were sharply lower Monday afternoon, as investors reacted to weaker-than-expected economic data and the collapse of one of the world’s most well-known tour operators.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7326.08-18.84-0.26484053582
DAXDAXDAX12342.33-125.68-1.0180383570
CACCACCAC5630.76-60.02-1.0681625014
The pan-European Stoxx 600 was down around 0.8% during afternoon deals, with most sectors and major bourses in negative territory.
Europe’s autos sector, mining sector, and banking index all traded sharply lower. France’s Peugeot Citroen, Germany’s Commerzbank and the Netherlands’ ArcelorMittal were the worst performers from their respective sectors.
Fragile market sentiment deteriorated on Monday after business activity data from the bloc’s biggest economy added to investors’ recession fears.
German private sector activity shrank for the first time in six-and-a-half years in September, survey data showed, as a manufacturing recession deepened unexpectedly and growth in the service sector lost momentum.
Markit’s flash reading of composite German PMI (purchasing managers’ index) came in at 49.1 in September, down from 51.7 in the previous month.
The manufacturing element was particularly troubling, coming in 41.4. That’s the lowest gauge of German factory sentiment for more than a decade. Any number below 50 indicates contraction.

Thomas Cook

Travel and leisure stocks traded marginally higher Monday afternoon. It comes after British tour operator Thomas Cook announced it had collapsed, leaving thousands of holidaymakers stranded.
CEO Peter Fankhauser apologized to the group’s customers and staff, adding it was “a matter of profound regret” the firm was unable to secure a rescue package from its lenders. The tour operator’s failure has put 22,000 jobs at risk worldwide.
European airlines and tour operator TUI rose to the top of the benchmark during lunchtime trade, with Britain’s easyJet also surging higher on the news.
The collapse of Thomas Cook could cut come overcapacity that has hurt profits and weighed on holiday prices in recent years, Reuters reported, citing traders. Shares of TUI jumped more than 7% for the day.

Trade developments

Market focus was largely attuned to the latest progress in U.S.-China trade negotiations. The two countries had described their latest talks as “productive” and “constructive,” but stocks on Wall Street fell Friday after Beijing officials canceled a visit to U.S. farms in Montana, cutting their trip to the country short.
Washington and Beijing have slapped tariffs on billions of dollars’ worth of each other’s goods since the start of an intense trade dispute which began last year.
Back in Europe, Britain’s opposition Labour Party kicked off its annual party conference over the weekend. According to Reuters, the party is expected to decide between two Brexit policies on Monday — to campaign to remain in the EU in a second referendum or defer a decision on what position to take until after an election. The U.K. is slated to leave the EU on Oct. 31.
— Reuters contributed to this report.

Sep 4, 2019

Europe I Europe Markets Closing Report: European stocks close higher as Brexit chaos rumbles on and Hong Kong tensions ease

Chloe Taylor, Elliot Smith



European stocks closed higher Wednesday after British lawmakers defeated Prime Minister Boris Johnson’s government in a vote to seize control of parliamentary business, moving closer to blocking a no-deal Brexit.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7311.2643.070.59674921405
DAXDAXDAX12025.04114.180.9663323800
CACCACCAC5532.0766.001.2160939825
The pan-European Stoxx 600 was up 0.9% at the closing bell, basic resources jumping 2.9% to lead gains as all sectors and major bourses traded in positive territory.
In the House of Commons on Tuesday night, MPs voted to allow a bill to block a no-deal Brexit to be introduced, defeating the government by 27 votes as 21 lawmakers from Johnson’s own ruling Conservative party voted with the opposition. Johnson said following the vote that he would table a motion for a general election, but main opposition Labour party leader Jeremy Corbyn said he will not back the early election unless the bill ruling out no-deal is passed first.
Meanwhile, the Bank of England lowered its estimate for the scale of damage to the U.K. economy in a no-deal Brexit scenario, Reuters reported on Wednesday. Sterling gained on Wednesday afternoon, rising to $1.2189 having fallen as low as $1.1958, its lowest since an October 2016 flash crash, during Tuesday’s session.
Hong Kong stocks surged nearly 4% on Wednesday with confirmation that the extradition bill which triggered months of violent mass protests has been fully withdrawn. Lam had suspended the bill in June but protests continued, with Sunday proving the most violent day since mass protests first broke out.
Stocks on Wall Street were also trading higher on Wednesday, as investors digested the developments in Hong Kong.
Back in Europe, Italian stocks rallied after Prime Minister Giuseppe Conte announced that the Democratic Party (PD)’s Roberto Gualtieri would become the new government’s economy minister. Luigi Di Maio, leader of the anti-establishment Five Star Movement (M5S) will be foreign minister, while the new interior minister will be Luciana Lamorgese, who has no political affiliation, Reuters reported. The FTSE MIB was up 1.6% on the back of the news.

Stocks on the move

France’s Valeo saw its shares gain 7.6% to top the Stoxx 600 by the end of trade, while French electronics group Thales saw its shares rise by 5.4% following strong first half results.
At the other end of the European blue chip index, Danish medical equipment maker Ambu’s shares were down 6.8% at the closing bell.
Iliad shares fell 5.5% after Bank of America Merrill Lynch cut the French telecoms company’s price target, while Barratt Developments shares shed 3.6% after first half results as Brexit continues to weigh on Britain’s construction sector.

Sep 3, 2019

Europe I Europe Markets Closing Report: European stocks close lower as UK prepares for Brexit showdown; Sterling back above $1.20

Chloe Taylor, Elliot Smith



European stocks traded lower Tuesday afternoon but pared earlier losses following reports that the European Central Bank (ECB) could soon announce a broad stimulus package for the euro zone.
The pan-European Stoxx 600 was down 0.17%, retail stocks each shedding 0.8% to lead losses as most sectors and major bourses traded in the red.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7248.70-33.24-0.46388300174
DAXDAXDAX11894.72-59.06-0.4946922089
CACCACCAC5454.73-38.31-0.7036480272
Sterling broke below $1.20 on Tuesday morning amid Britain’s political uncertainty, sliding as low as $1.1967 to reach its lowest point against the greenback since the October 2016 flash crash. However, it recovered slightly to trade at $1.2036 by around 2:30 p.m. as rebel lawmakers applied for an emergency debate in parliament in the hope of thwarting a no-deal Brexit.
If the request is accepted by the House Speaker John Bercow, opposition lawmakers could have a vote on Tuesday evening to wrestle control of parliamentary business away from the government, which would be seen as a de facto confidence vote on Prime Minister Boris Johnson and his Brexit strategy. This could lead to an extension of the Brexit deadline until January 31, 2020.
Government officials on Monday said that Johnson would call for a snap general election on October 14 if a cross-party group of MPs (Members of Parliament), including some rebels from within Johnson’s own ruling Conservative Party, succeed with a legislative bill to block a no-deal departure.
In a speech outside 10 Downing Street on Monday, Johnson said hopes of a renewed withdrawal agreement had risen, but reiterated that Britain would not delay its exit from the bloc again.
Johnson would need the backing of two-thirds of the U.K.’s 650 MPs to trigger an election in the fall.
Stocks in the U.S. opened lower on Tuesday, the Dow Jones Industrial Average sliding more than 1% as the U.S. and China began to impose new tariffs on one another’s goods.

ECB stimulus

Back in Europe, stocks pared losses after Reuters reported, citing sources, that ECB policymakers were leaning toward a stimulus package that consisted of a rate cut and compensation for lenders over the negative side effects of negative interest rates.
Euro zone lenders’ shares rose on the back of the report, with Germany’s Commerzbank and Italy’s Unicredit and Mediobanca among several banks to edge into positive territory.
Government bonds also rallied, with yields on Italian 10-year notes reaching a record low of 0.87%.
In corporate news, China has given Deutsche Bank and BNP Paribas “type A” licences allowing them to serve as a lead underwriter for corporate debt issued by non-financial institutions, an industry body under the central bank said on Tuesday.
China has faced pressure to ease its restrictions on foreign banks which have hindered business expansion, and been subject to calls to open its markets further amid an escalating trade war with the U.S.
On the data front, U.K. construction PMI (purchasing managers’ index) data missed forecasts by 0.9 points, indicating further drags from political uncertainty. Meanwhile euro zone producer prices inched up in July after four months of decline, due to an increase in energy prices.

Stocks on the move

Shares of communications company SES fell 4.75% by early afternoon after it announced that CFO Andrew Browne would step down.
French telecoms operator Iliad suffered a 6% drop after first-half results showed it had lost 127,000 subscribers as rivals gained market share.
Danish hospital equipment maker Ambu climbed 6.5% by afternoon deals to top the European blue chip index.

Aug 30, 2019

Europe I Europe Markets Closing Report: European stocks close higher on signs of trade war easing; Italy stock falls; Deutsche Wohnen up 10%

Chloe Taylor, Elliot Smith



European stocks rallied on Friday after China struck an accommodating tone over its trade war with the U.S., while British opposition lawmakers plan to trigger an emergency debate to prevent a no-deal Brexit.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7192.197.870.11378049305
DAXDAXDAX11909.8670.980.6048089101
CACCACCAC5467.9517.980.3344617656
The pan-European Stoxx 600 climbed 0.8% by the afternoon, with China-exposed basic resources stocks jumping 2.5% as all sectors traded in positive territory.
Bucking the trend, however, were Italian stocks, which fell on the back of new political developments in the country.
Luigi Di Maio, leader of Italy’s Five-Star Movement, said on Friday his party would only enter a coalition with opposition PD if it agreed to a string of policy demands, denting hopes that some political stability would soon be restored in Rome.
Italy’s FTSE MIB was more than 0.3% lower during afternoon deals, with Banco BPM slumping to the bottom of the Stoxx 600 on a 3% loss.
More broadly, stocks worldwide are experiencing a reprieve after the Chinese Ministry of Commerce on Thursday indicated that it would not escalate the trade war with Washington, urging negotiation and collaboration in pursuit of a “calm” resolution.
U.S. stocks were trading in positive territory on Friday as investors became more hopeful that a resolution to the Sino-U.S. conflict would soon be reached.
Back in Europe, investors continued to monitor the fallout from U.K. Prime Minister Boris Johnson’s suspension of parliament. The main opposition Labour party said on Thursday that it would trigger an emergency debate in parliament next week, in a bid to stop Johnson taking Britain out of the European Union without a withdrawal deal on October 31.
The no-deal scenario is widely opposed in the British parliament, and the elevated risk of it becoming reality has sent sterling lower.
In corporate news, Reuters reported on Thursday that French lender BNP Paribas plans to bid for Deutsche Bank’s equity derivatives book, with the intention of securing a deal within the next few weeks.
On the data front, French August CPI (consumer price index) inflation came in at 1.2% year-on-year, slightly softer than in July but in line with forecasts. Spanish retail sales rose by 3.2% in July from a year earlier after climbing by 2.5% in June.
U.K. consumer sentiment surveys revealed that confidence ebbed away from British businesses and consumers in August as the Brexit crisis metastasized, suggesting political turmoil is increasingly impacting the economy.

Stocks on the move

Deutsche Wohnen shares jumped 10.6% after a German newspaper reported that an incoming rent freeze in Berlin could be more lenient than previously planned.
Shares of Danish hospital equipment maker Ambu saw its shares rise 6% after a positive recommendation from the U.S. Food and Drug Administration (FDA).
At the other end of the Stoxx 600 was jewelry maker Pandora, which was trading 3% lower during the afternoon session. The Danish company recently announced it would undergo an extensive rebrand in a bid to boost sales.

Aug 29, 2019

Europe I Europe Markets Closing Report: Europe stocks close higher as China says it wants 'calm' trade resolution; Micro Focus down 31%

Chloe Taylor, Elliot Smith



European markets closed higher on Thursday as investors monitored developments in the U.S.-China trade war and digested comments from central bank officials.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7182.4667.750.95369036852
DAXDAXDAX11836.88135.861.1650688393
CACCACCAC5450.1981.391.5247932881
Stocks trimmed gains slightly during the afternoon session, after European Central Bank (ECB) policymaker Klass Knot said he saw no reason for quantitative easing to be resumed in the region, according to Bloomberg. Soft inflation data had earlier reinforced expectations that the ECB will inject stimulus into the economy next month, providing an additional boost to stocks.
Although Knot’s comments briefly dented sentiment, the pan-European Stoxx 600 pared losses to end the session more than 1% higher, with all sectors and major bourses in positive territory.

China’s ‘calm attitude’

Stocks surged during early trade on Thursday after the Chinese Ministry of Commerce said it firmly rejected an escalation of the trade war with the U.S., and vowed to resolve the dispute with a “calm attitude.”
Tensions between the world’s two largest economies escalated last week with each country announcing increases to tariffs on one another’s goods, but China’s Ministry of Commerce spokesman Gao Feng said on Thursday that Beijing was “willing to negotiate and collaborate,” adding that Chinese and U.S. trade delegations have maintained “effective” communication.
Stocks on Wall Street also traded in positive territory on Thursday as investor sentiment was lifted by the comments from China.

Soft inflation data

Back in Europe, data from six German states indicated on Thursday that overall German inflation likely slowed in August from the prior month, sliding further below the ECB’s target. The ECB has indicated that stimulus could be forthcoming if inflation continues to languish well below its target of almost 2%, with markets expecting policy easing at the central bank’s meeting on September 12.
Investors are monitoring political developments after news Wednesday that U.K. Prime Minister Boris Johnson will suspend Britain’s parliament for more than a month before the country’s departure from the European Union. This would potentially scupper efforts from opposition parties to block a chaotic no-deal exit if Johnson is unable to secure a new deal with the bloc before October 31.
Italian politics is also in focus as President Sergio Mattarella on Thursday handed a fresh mandate to Prime Minister Giuseppe Conte to form a government, comprising a coalition between the Five Star Movement (M5S) and the opposition Democratic Party (PD). Conte had resigned following a decision by the Lega party to pull out of its previous coalition with M5S.

Stocks on the move

British software firm Micro Focus slightly pared early losses which saw shares hit their lowest level since April 2018 after the company cut its full-year guidance. The company’s stock was trading around 32% lower during the afternoon session.
At the other end of the Stoxx 600, French industrial giant Bouygues gained 6.75% after the firm reported a jump in profits and better-than-expected first-half results.
Luxembourg-based Eurofins Scientific jumped more than 5% after the biopharma testing firm reported better-than-expected first-half results and suffered only a mild loss from a recent cyberattack.

Aug 28, 2019

Europe | Europe Markets Closing Report: Europe stocks close lower; sterling falls on no-deal Brexit fears; Thomas Cook tumbles 16%

Chloe Taylor, Elliot Smith



European stocks ended Wednesday’s session in negative territory after the U.S. yield curve inversion deepened to levels not seen since 2007, reigniting fears of an impending recession.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7114.7125.130.35669423128
DAXDAXDAX11701.02-29.00-0.2559962608
CACCACCAC5368.80-18.29-0.3462433877
The pan-European Stoxx 600 was 0.1% lower at the closing bell, insurance stocks shedding 1.2% while the oil and gas sector posted gains on the back of higher oil prices.
The inversion of the spread between the 10-year and 2-year U.S. Treasury yield continued to worsen on Wednesday after falling to its lowest level since before the financial crisis on Tuesday, with inversions of the yield curve consistently preceding periods of recession. The rate on the benchmark 30-year Treasury bond also hit a new all-time low.
Sterling fell around 0.4% against the dollar on Wednesday after the queen approved British Prime Minister Boris Johnson’s plan to suspend parliament. A statement from the Privy Council, a body of advisers to the queen, confirmed that parliament would be suspended on a day between September 9 and September 12, with the suspension lasting until October 14.
The highly-controversial move will restrict parliamentary time before the Brexit deadline and increase the chances of the U.K. leaving the EU with no deal. The fall in sterling boosted the FTSE 100, which was the only major bourse to end the session above the flatline.
Stateside, stocks traded higher on Wednesday, lifted by the energy sector which received a boost from the uplift in oil prices.
Back in Europe, German consumer sentiment data published Wednesday showed that consumer morale remained unexpectedly stable heading into September, despite the country’s deteriorating economic growth outlook.
Investor focus was also attuned to domestic politics in Italy as the Five Star Movement (M5S) and Democratic Party (PD) on Tuesday made progress toward a coalition deal.

Stocks on the move

Danish brewery Royal Unibrew jumped 10.8% to top the Stoxx 600, after posting higher-than-expected second-quarter profits and revising up its full-year guidance.
At the other end of the European blue chip index, Danish jeweler Pandora fell 6.9%, while London-listed John Wood Group shed 6.5%.
U.K.-listed airlines slid as no-deal Brexit fears intensified, led by easyJet, which dropped 2.7% by the closing bell.
Ailing British tourism group Thomas Cook saw its shares tumble 16.5% after agreeing a rescue package with China’s Fosun.

Aug 26, 2019

Europe | Europe Markets Closing Report: European stocks close flat as Trump signals US-China trade talks will resume

Chloe Taylor, Elliot Smith, Ryan Browne



European stocks traded lower on Monday, after U.S. President Donald Trump said China had called U.S. trade negotiators to resume talks.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7094.98-33.20-0.47643009319
DAXDAXDAX11642.6231.110.2741563176
CACCACCAC5343.8216.950.3235186642
The pan-European Stoxx 600 index was around 0.2% lower during afternoon deals, with autos leading gains on a 0.7% climb. Healthcare stocks were the worst performers, falling 0.6%. U.K. markets are closed due to a bank holiday.
Speaking to reporters on Monday at the Group of Seven (G-7) summit in Biarritz, France, Trump said China had expressed a desire to resume discussions over a potential trade deal.
“China called last night our top trade people and said ‘let’s get back to the table’ so we will be getting back to the table and I think they want to do something,” Trump said. “They have been hurt very badly but they understand this is the right thing to do and I have great respect for it. This is a very positive development for the world.”
In the U.S., stocks opened higher on Monday after Trump’s comments on resuming trade negotiations with China.
Sentiment was shaken in the previous session as China announced plans to impose additional tariffs on $75 billion in U.S. goods, which was followed by President Donald Trump ordering American firms to find an “alternative” to operating in China.
Trump said his administration would raise existing duties on $250 billion worth of Chinese products to 30% from 25% on October 1, while levies on another $300 billion in Chinese goods, which will start to take effect on September 1, will now be 15% instead of 10%.
The trade rift between the world’s two largest economies has clouded the meeting of world leaders, with Trump claiming he “could declare a national emergency” over the issue.
Another big talking point at the G-7 was France’s plans to hit tech giants — including Facebook, Amazon and Google — with a 3% so-called “digital tax,” which has drawn the ire of Trump. The U.S. leader has threatened to tax French wine in response; European Council President Donald Tusk said over the weekend that Brussels would “respond in kind” if Washington imposes tariffs on France over the levy.
In terms of data, Munich’s Ifo Institute said that German business morale fell in August, with its business climate index coming in at 94.3, versus an expected 95.1. There are fears Germany could be headed for a recession after gross domestic product (GDP) shrank by 0.1% in the second quarter. A recession is typically marked two consecutive quarters of contraction, as well as general decline in economic activity.
Looking at individual stocks, Germany’s Deutsche Wohnen slumped 3% following reports on details of a planned rent cap in Berlin.
At the top of the European blue chip index, shares of airline Lufthansa was up by 2.75%.

Aug 23, 2019

Europe | Europe Markets Closing Report: European stocks close lower as US-China trade tensions escalate

Elliot Smith


European stocks closed lower on Friday as trade tensions between the world’s two largest economies heightened.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7118.56-9.62-0.13384425437
DAXDAXDAX11667.38-79.66-0.6863976446
CACCACCAC5350.88-37.37-0.6944455877
The pan-European Stoxx 600 closed provisionally 0.6% lower, with most sectors in negative territory. Autos stocks suffered sharp losses by the close, slumping 2%.
The Chinese State Council said it decided to slap tariffs ranging from 5% to 10% on the additional imports in two batches, effective on September 1 and December 15. A 25% tariff will also be places on U.S. cars and 5% on auto parts, with effect from December 15.
Following that announcement, President Donald Trump said he was ordering American companies to “immediately start looking for an alternative to China.” The U.S. leader urged postal carriers including FedEx and Amazon to “SEARCH FOR & REFUSE all deliveries of Fentanyl from China (or anywhere else!).”
Investors also digested remarks from Powell at the central bank’s Jackson Hole symposium on Friday. The Fed chief said in a speech that the Fed “will act as appropriate to sustain the expansion,” a phrase he has used several times in the recent past.
“The global growth outlook has been deteriorating since the middle of last year,” Powell said. “Trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States.”
In an apparent response, Trump questioned whether America’s “biggest enemy” was Powell or Chinese President Xi Jinping.
Powell’s remarks initially buoyed sentiment, but the latest trade escalation tipped sentiment to the downside. On Wall Street, stocks had initially turned south following China’s tariff threat, but the Dow Jones Industrial Average eked out small gains following the release of the Fed chair’s speech.

G-7, Italy

The Group of Seven (G-7) annual summit begins on Saturday in France, bringing together the leaders of Britain, Canada, France, Germany, Italy, Japan and the United States, and is expected to end without a joint communique for the first time in its 44-year history due to deepening rifts between the heads of state.
Brexit remains on the radar after U.K. Prime Minister Boris Johnson met with German Chancellor Angela Merkel and French President Emmanuel Macron this week for talks.
Macron on Thursday signaled confidence that a solution could be found regarding a slightly amended withdrawal agreement, but reiterated that the backstop for the Republic of Ireland-Northern Ireland border is “indispensable.”
Back in Europe, Italian President Sergio Mattarella said several parties had indicated that they need more time to work out a solution to the ongoing government crisis, and will report back early next week. Luigi di Maio, leader of the anti-establishment Five Star Movement (M5S), said his party is working to avoid snap elections.
In corporate news, Deutsche Bank has agreed to pay $16 million to the U.S. Securities and Exchange Commission to settle charges that it violated the Foreign Corrupt Practices Act. The German lender’s stock traded 0.8% higher at the start of the session.
Meanwhile, the Financial Times reported that the EU is considering plans for a 100 billion euro ($110.71 billion) sovereign wealth fund to finance European industrial champions in order to compete with U.S. corporate giants, such as Apple and Google.

Stocks on the move

Danish hospital equipment maker Ambu gained 7% to top the Stoxx 600, while Simcorp shares were also up 5% after the Danish IT company posted strong second-quarter results and upgraded its earnings forecast.
At the bottom of the European blue chip index, Rockwool International’s stock tumbled nearly 16% after its second-quarter results.
-CNBC’s Yun Li contributed to this report.remains on the radar after U.K. Prime Minister Boris Johnson met with German Chancellor Angela Merkel and French President Emmanuel Macron this week for talks.
Macron on Thursday signaled confidence that a solution could be found regarding a slightly amended withdrawal agreement, but reiterated that the backstop for the Republic of Ireland-Northern Ireland border is “indispensable.”
Back in Europe, Italian President Sergio Mattarella said several parties had indicated that they need more time to work out a solution to the ongoing government crisis, and will report back early next week. Luigi di Maio, leader of the anti-establishment Five Star Movement (M5S), said his party is working to avoid snap elections.
In corporate news, Deutsche Bank has agreed to pay $16 million to the U.S. Securities and Exchange Commission to settle charges that it violated the Foreign Corrupt Practices Act. The German lender’s stock traded 0.8% higher at the start of the session.
Meanwhile, the Financial Times reported that the EU is considering plans for a 100 billion euro ($110.71 billion) sovereign wealth fund to finance European industrial champions in order to compete with U.S. corporate giants, such as Apple and Google.

Stocks on the move

Danish hospital equipment maker Ambu gained 7% to top the Stoxx 600, while Simcorp shares were also up 5% after the Danish IT company posted strong second-quarter results and upgraded its earnings forecast.
At the bottom of the European blue chip index, Rockwool International’s stock tumbled nearly 16% after its second-quarter results.
-CNBC’s Yun Li contributed to this report.

Aug 22, 2019

Europe I Europe Markets Closing Report: European stocks close lower amid recession fears; investors await Fed clarity

Elliot Smith



European stocks closed lower on Thursday as fears of a recession rose ahead of a key speech from Federal Reserve Chairman Jerome Powell.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7128.18-75.79-1.05642093678
DAXDAXDAX11745.74-57.11-0.4873713477
CACCACCAC5388.25-47.23-0.8770404369
The pan-European Stoxx 600 closed provisionally down 0.5%, with the majority of sectors and major bourses tipping into negative territory.
European markets started the session in the red after the widely watched 2-year-10-year U.S. yield curve inverted for the second time in two weeks. The yield curve, often monitored as precursor for recession, flattened and then briefly inverted Wednesday after the release of minutes from the latest meeting of the U.S. Federal Reserve’s Federal Open Market Committee (FOMC).
The main part of the yield curve inverted once again on Thursday, its third trigger of the recession indicator in less than two weeks. U.S. stocks fell as a result, with the Dow Jones Industrial Average slumping and the Nasdaq and S&P 500 indexes also in the red. Market players are looking ahead to a speech from Fed chief Powell at Jackson Hole, which is due to take place on Friday.
Back in Europe, minutes from a July 25 meeting, published Thursday, showed ECB policymakers suggesting that a combination of measures may be needed to prop up the euro zone economy, with recent indicators painting a bleak picture of the outlook.
ECB President Mario Draghi has hinted heavily at more stimulus as early as September, with growth and inflation on a steady decline and economic data weakening.
In foreign exchange markets, comments from German Chancellor Angela Merkel caused a spike in the British pound on Thursday. Europe’s most powerful leader had suggested a solution to the Irish backstop — a key sticking point in Brexit negotiations — could be found before a October 31 deadline. Sterling jumped 0.9% versus the dollar to $1.2235.
In terms of economic data, euro zone business growth was shown to have improved in August, with services activity accelerating and manufacturing contracting at a slower pace. However, trade war fears knocked future expectations to a six-year low. Euro zone PMI climbed in August to 51.8 from 51.5 in July, exceeding analyst expectations. France’s composite PMI rose to 52.7 points from 51.9 in July, also beating forecasts, while Germany’s data was not quite as strong, the composite coming in at 51.4, but still surpassed expectations.

Stocks on the move

Shares of London-listed NMC Health were 18.6% higher, having earlier risen by as much as 42%, after Reuters also reported that two groups, one backed by China’s Fosun, had made competing offers for a 40% stake in the United Arab Emirates-based company.
Shares of Thyssenkrupp jumped 5.6% after reports the German conglomerate filed a complaint against the EU’s attempt to block a joint venture with Tata Steel.
Danish hospital equipment maker Ambu pared early losses to fall 15.5%, still the worst performing stock on the European blue chip index, after its interim third-quarter report and a decision to invest further in a direct sales organization for pulmonology in the U.S.

Aug 21, 2019

Europe | Europe Markets Closing Report: European stocks close higher as investors await Fed minutes

Elliot Smith


European stocks closed higher Wednesday as investors awaited minutes from a meeting of the U.S. Federal Reserve, while President Donald Trump suggested he was weighing measures to boost the world’s largest economy.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7200.2775.271.06393612937
DAXDAXDAX11795.55144.371.2443015750
CACCACCAC5433.0588.411.6535978002
The pan-European Stoxx 600 closed provisionally up over 1.1% , autos leading gains with a 1.7% jump as all sectors and major bourses traded firmly in positive territory.
Shares of Renault and Fiat Chrysler Automobiles both gained after an Italian press report suggested contact between executives at both firms has never ceased and a merger remains on the cards. Renault stock climbed 3.7% while Fiat Chrysler was up 3.3%.
European investors monitored Italian markets late Wednesday and early Thursday after Prime Minister Giuseppe Conte resigned, kickstarting consultations between President Sergio Mattarella and party leaders in the hope of a solution to the political crisis.
Investors seemed to welcome the prospect of political change, as Italy’s FTSE MIB index shrugged off the uncertainty to jump 1.8%.
The minutes of the July meeting by the Federal Open Market Committee (FOMC) are in focus as investors seek hints from the U.S. central bank over the prospect of impending monetary policy easing. The minutes are due out at 2:00 p.m. ET.
Meanwhile, Trump reiterated Tuesday that he was not prepared to make a trade deal with China amid the current standoff, with Chinese telecommunications giant Huawei still firmly in Washington’s cross hairs. However, he also said he was “thinking about” cutting payroll taxes, less than a day after the White House denied that a payroll tax cut was being discussed.
The president again lambasted Fed Chairman Jerome Powell, placing him under further pressure to ease monetary policy more aggressively. Trump said Powell and the Fed are the “only problem” for his administration, comparing the central bank chief to a “golfer who can’t putt.”
Britain’s tumultuous exit from the European Union remains on investors’ radar, with British Prime Minister Boris Johnson accusing his EU counterparts of being “a bit negative” but reiterating hopes of reaching a new deal before October 31.
Johnson is set to meet German Chancellor Angela Merkel Wednesday evening as he seeks flexibility from EU leaders over the Irish backstop, having received a strong rebuke from European Council President Donald Tusk on Tuesday.
Germany auctioned a 30-year bond with a negative interest rate for the first time on Wednesday but faced tepid demand, with the sale attracting only 869 million euros ($964.76 million) of bids for up to 2 billion euros of debt on offer. The yield means the German government will not make any interest payments to those buying the bond until it matures in August 2050.
On Wall Street, stocks surged as fresh quarterly earnings numbers from retailers Target and Lowe’s buoyed sentiment. The Dow Jones Industrial Average rose 290 points, while the Nasdaq and S&P 500 indexes were also in positive territory.

Stocks on the move

Pandora continued to surge Wednesday following a strong session on Tuesday as second-quarter results showed promising recovery signs. The Danish jeweler’s stock added a further 16.8% by the close.
French household appliances maker SEB gained 6.5% after Citi initiated the company’s stock with a “buy” rating, citing strong positioning as a market leader along with improving margins, while Germany’s GEA Group climbed around 4% after Goldman Sachs upgraded the stock to “buy”.
At the other end of the European blue chip index, British energy giant Wood Group slipped 4.6% after announcing that it would offload its nuclear business for £250 million ($303.65 million) in a bid to reduce debt.
—CNBC’s Spriha Srivastava contributed to this report.of reaching a new deal before October 31.
Johnson is set to meet German Chancellor Angela Merkel Wednesday evening as he seeks flexibility from EU leaders over the Irish backstop, having received a strong rebuke from European Council President Donald Tusk on Tuesday.
Germany auctioned a 30-year bond with a negative interest rate for the first time on Wednesday but faced tepid demand, with the sale attracting only 869 million euros ($964.76 million) of bids for up to 2 billion euros of debt on offer. The yield means the German government will not make any interest payments to those buying the bond until it matures in August 2050.
On Wall Street, stocks surged as fresh quarterly earnings numbers from retailers Target and Lowe’s buoyed sentiment. The Dow Jones Industrial Average rose 290 points, while the Nasdaq and S&P 500 indexes were also in positive territory.

Stocks on the move

Pandora continued to surge Wednesday following a strong session on Tuesday as second-quarter results showed promising recovery signs. The Danish jeweler’s stock added a further 16.8% by the close.
French household appliances maker SEB gained 6.5% after Citi initiated the company’s stock with a “buy” rating, citing strong positioning as a market leader along with improving margins, while Germany’s GEA Group climbed around 4% after Goldman Sachs upgraded the stock to “buy”.
At the other end of the European blue chip index, British energy giant Wood Group slipped 4.6% after announcing that it would offload its nuclear business for £250 million ($303.65 million) in a bid to reduce debt.
—CNBC’s Spriha Srivastava contributed to this report.

Aug 20, 2019

Europe | Europe Markets Closing Report: European stocks close lower as Italian PM resigns; FTSE MIB slides 1%

Elliot Smith



European stocks closed lower on Tuesday as worries heightened over Italy's mounting political crisis.
 
FTSE FTSE 100 7125.00 -64.65 -0.90% 766069944
DAX DAX 11651.18 -64.19 -0.55% 68833315
CAC CAC 5344.64 -26.92 -0.50% 65790345
The pan-European Stoxx 600 closed provisionally down around 0.7%, with the majority of sectors and major bourses in negative territory.
Stocks had earlier made tentative gains, but momentum soon swung to the downside as Italian Prime Minister Giuseppe Conte announced he would resign from the government. It comes after Lega party leader Matteo Salvini pulled the plug on his coalition with the anti-establishment Five Star Movement (M5S).
Conte spent a large portion of a speech to the Senate on Tuesday slamming Salvini for pushing for a vote of no confidence in the government. Italy's FTSE MIB tumbled 1%, hitting the day's low as Conte spoke. Shares of Italian banks Ubi Banca and Banco BPM fell over 2%.

Stimulus hopes

Hopes of stimulus from major world economies had previously buoyed equities. Investors are awaiting minutes from the Fed's meeting on Wednesday, along with any hints from Chairman Jerome Powell ahead of the central bank's economic symposium in Jackson Hole, Wyoming, which begins Friday.
Finnish central bank governor Olli Rehn said on Monday that the European Central Bank (ECB) was determined to act if the medium-term inflation outlook continues to miss its target of below but close to 2%. This followed the German finance minster indicating over the weekend that the government is prepared to deploy fiscal stimulus to boost its ailing economy,
Meanwhile, the People's Bank of Chinapublished new loan prime rates intended to lower borrowing costs for companies and stimulate the economy.
On Wall Street, stocks slipped following a sharp rebound in the previous session. The Dow Jones Industrial Average fell 30 points while the Nasdaq and S&P 500 indexes were also negative.
The U.S. extended a reprieve permitting Chinese telecommunications giant Huawei to purchase components from U.S. companies to supply existing companies for 90 days. However, Washington's Bureau of Industry and Security (BIS) also added another 46 Huawei affiliates to its blacklist, a move the tech company called "unjust" and "politically motivated."
Back in Europe, U.K. Prime Minister Boris Johnson will be in Paris Thursday to meet with French President Emmanuel Macron as he seeks resolution to Britain's current impasse with the European Union over Brexit.
Johnson faced a rebuke from European Council President Donald Tusk regarding the Irish backstop on Tuesday. Tusk responded to a letter from Johnson urging alternative arrangements in a tweet, reiterating the EU's position that the backstop is an insurance policy to avoid a hard border "unless and until an alternative is found."
"Those against the backstop and not proposing realistic alternatives in fact support reestablishing a border. Even if they do not admit it," he added.
Prior to that meeting, Johnson will meet with German Chancellor Angela Merkel on Wednesday. Merkel caused a brief spike in the pound on Tuesday when she told reporters that she would think about options to prevent Britain crashing out of Europe with no deal.

Stocks on the move

Shares of Danish jeweler Pandora climbed 10% to top the Stoxx 600 after it confirmed full-year guidance following its second-quarter results. Meanwhile French retailer Casino climbed almost 6% after it announced the pursuit of a further 2 billion euros ($2.22 billion) in asset sales.
Belgium's largest telecoms company Proximus was among the worst performers, sliding 6% after Goldman Sachs cut its stock to "sell."
British postal service Royal Mail saw its shares slide 5% after a union accused the company of reneging on an agreement with workers which ended a strike last year.

Aug 19, 2019

Europe | Europe Markets Closing Report: European stocks close higher as policy stimulus hopes grow; Greene King up 51%

Elliot Smith



European stocks rose on Monday as hopes emerged for stimulus from central banks and fiscal measures from major economies such as China and Germany.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7196.7879.631.12377357276
DAXDAXDAX11718.78156.041.3555596963
CACCACCAC5369.5768.781.3046759248
The pan-European Stoxx 600 closed provisionally up more than 1%, with basic resources surging over 2%. All sectors and most major bourses were in positive territory.
German Finance Minister Olaf Scholz said on Sunday that Germany has the fiscal strength to mitigate any future economic crisis with “full force” and suggested that Berlin could free up around 50 billion euros ($55 billion) of extra spending.
Meanwhile, China’s central bank unveiled a key interest rate reform on Saturday intended to lower borrowing costs for companies and reinvigorate an economy being negatively impacted by its trade war with the U.S. U.S. Treasury yields, which has been causing global fears of a recession after plunging last week, showed signs of a rebound Monday.
On Wall Street, stocks continued to bounce back from last week’s sharp sell-off, as Treasury yields rebounded and the U.S. agreed to extend a temporary reprieve to Chinese telecom giant Huawei.
Back in Europe, leaked British government documents warning of the negative impact of a no-deal Brexit revealed that Britain could face food, medicine and petrol shortages should it leave the European Union without a deal on October 31.
Michael Gove, the minister in charge of planning for a no-deal scenario, said the documents were based on a worse-case scenario, while British news outlets cited government sources as blaming the leak on a hostile former minister intent on undermining Prime Minister Boris Johnson’s negotiations with the bloc.
In terms of individual stocks, British pub group and brewer Greene King surged almost 51% by the end of the trading session, after it was announced that a unit of Hong Kong’s CK Asset Holdings would buy the company for £2.7 billion.
Meanwhile, online supermarket Ocado was another top performer, rising 4.6% after J.P. Morgan flagged a “tipping point” in profitability.
At the other end of the European blue chip index, Dutch chemicals company IMCD slipped 2% after its earnings report on Friday cited a challenging macro-economic environment as impacting growth for the second quarter.

Aug 16, 2019

Europe I Europe Markets Closing Report I European stocks close higher, ending a volatile week for global equity markets

Sam Meredith, Silvia Amaro ,Chloe Taylor



European markets closed sharply higher Friday, as investors tentatively returned to riskier assets after a turbulent week.
The pan-European Stoxx 600 index closed provisionally up almost 1.3%, with all sectors and major bourses in positive territory.
A technical glitch prevented Britain’s FTSE 100 from opening for almost two hours on Friday morning. It was the index’s longest outage in eight years. The bourse closed about 0.7% higher.
The U.K.’s blue-chip index had hit a six-month low in the previous session, as an escalating trade war between the United States and China and growing concerns about the world economy saw global stocks in sell-off mode.

European Markets: FTSE, GDAXI, FCHI, IBEX

Europe’s bank and utility stocks led the gains, with both sectors surging about 2.4% and 1.7% respectively.
Looking at individual stocks, Switzerland’s Sunrise Communications was one European company in focus Friday. Germany’s Freenet said it would vote against a proposed capital increase by the Zurich-based firm to fund a takeover bid for UPC. Shares of Sunrise rose about 3.5%.
Meanwhile, the Netherlands’ Imcd tumbled to the bottom of the index after reporting first-half earnings on Friday. Shares slumped almost 15% as the firm’s CEO warned of uncertain and volatile market conditions.

Recession fears

On Wall Street, stocks resumed a partial rebound from a massive sell-off earlier in the week. The Dow Jones Industrial Average rose over 270 points, while the Nasdaq and S&P 500 indexes were also positive.
Trading, which had already been dampened by a slowing economy and ongoing Sino-U.S. trade tensions, became more volatile in recent days after the U.S. 2-year/10-year Treasury yield curve inverted — a market move that is widely considered to be a signal of a looming recession.
Speaking to CNBC in Asia, Ray Dalio, founder of the world’s largest hedge fund, said that there’s a 40% chance that the U.S. will experience a recession before the 2020 election.
Investors will also be watching for developments in the U.S.-China trade war. U.S. President Donald Trump said Thursday that trade negotiators were holding “productive” talks, adding that he expected a meeting to be held in September, Reuters reported.
However, Beijing said on Thursday that it would retaliate to the latest round of U.S. tariffs on Chinese goods.

Aug 15, 2019

Europe I Europe Markets Closing Report: European stocks close lower in choppy session

Elliot Smith



European stocks traded lower Thursday amid a volatile session following a global sell-off as bond markets stoked fears of an impending recession.
The pan-European Stoxx 600 finished the session provisionally down 0.33% in afternoon trade, autos leading losses with a 1.5% fall as the majority of sectors and major bourses dropped into the red. Utilities were the standout performers, gaining 0.7%.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7057.85-90.03-1.26571883649
DAXDAXDAX11402.93-89.73-0.7891361221
CACCACCAC5229.60-21.70-0.4171563684
Global markets were routed on Wednesday as the U.S. 2-year/10-year Treasury yield curve inverted for the first time since 2007, while the U.K. 2-year/10-year curve inverted for the first time in over a decade. Yield curve inversions are traditionally seen as indicators of an oncoming recession. German and French bond yields also hit record lows.
Weak economic data out of Germany and the euro zone compounded fears within Europe, with the German economy contracting in the second quarter.
Earlier, Asian stocks tumbled Thursday, led by the Japanese Nikkei 225, which fell 1.56%.
Stateside, the Dow Jones Industrial Average dropped over 800 points, posting its worst day of 2019 and falling to a two-month low. Shortly after the open Thursday, all three major indices were hovering unsteadily around the flat-line.
Investors around the world are closely watching geopolitical developments after U.S. President Donald Trump on Wednesday tied a potential U.S.-China trade deal to the humane resolution of protests disrupting Hong Kong.
Investors are monitoring mixed messages from China on Thursday regarding the trade war. After the Chinese State Council Tariff Committee said Beijing would have to take necessary counter-measures to President Trump’s latest tariff threat, China’s foreign ministry spokesperson struck a softer tone, saying in a statement that China hopes to “meet the U.S. halfway” on trade issues.

Stocks on the move

In terms of individual stocks, Swedish retailer Ica Gruppen saw its shares surge 10.9% in deals to top the Stoxx 600.
Danish beer maker Carlsberg was up 4.2% having earlier hit a fresh all-time high after it reported promising first-half earnings, raising revenue by 6.5% amid strong growth in Asia.
Shares of Dutch insurance group Aegon tumbled 7.7% two days after it announced the appointment of the head of NN Group, its biggest domestic rival, as its new chief executive.
Danish facility services company ISS fell 9.4% to the bottom of the European blue chip index, while United internet shares slid 6.2%, climbing off a six-year low earlier in the session after the German provider cut its full-year outlook.
Markets in Italy are closed for a public holiday.

Aug 13, 2019

Europe I Europe Markets Closing Report: European stocks jump as US delays China tariffs on phones and clothing

Elliot Smith



European stocks reversed course on Tuesday, edging higher as investors reacted to news that the U.S. has delayed additional tariffs on some Chinese imports.

European Markets: FTSE, GDAXI, FCHI, IBEX

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSEFTSE 100FTSE7266.2539.530.55456600925
DAXDAXDAX11778.8099.120.8587022619
CACCACCAC5376.2665.951.2468299391
The pan-European Stoxx 600 climbed into positive territory in afternoon trade, up 0.9%. Trade-sensitive sectors like autos and basic resources were among the biggest gainers.
The U.S. Trade Representative office said on Tuesday that certain items would be removed from a list of goods set to be hit with a new 10% levy, citing “health, safety, national security and other factors.”
Meanwhile, tariffs on electronic devices like phones and laptops and certain footwear and clothing will be delayed until December 15, the government agency said. Europe’s technology sector was up 1% on the news.
In terms of individual stocks, steel and mining giant ArcelorMittal saw its shares climb to the top of the pan-European benchmark following the USTR’s announcement. The stock was up 6.8%.
SalMar was another top performer in Europe, climbing 6.7% after DNB upgraded the Norwegian fish farm company to hold from sell.
At the other end was Henkel, which saw its shares slide nearly 6% after lowering its full-year outlook for sales and earnings on Tuesday. The German consumer goods firm blamed disappointing performance at its beauty unit and falling industrial production.
On Wall Street, stocks rose as traders digested the USTR announcement. The Dow Jones Industrial Average jumped 490 points while the tech-heavy Nasdaq index rose over 2%, led by Apple which got a boost from the news since many of its major products are produced in China.

Italy, Hong Kong

The full Italian Senate is due to meet on Tuesday evening to set the date for a motion of no confidence in the government, after the Lega party said last week that its governing coalition with the anti-establishment Five Star Movement had become unworkable.
Asian stocks declined on Tuesday after Hong Kong protests escalated and shut down the city’s airport, resulting in threats from Chinese outlets, which released a video showing military vehicles amassing near its border. Hong Kong’s Hang Seng index slid 1.86% by the afternoon to lead losses in the region.
Meanwhile, the People’s Bank of China set the official midpoint reference rate for the yuan at 7.0326 per dollar on Tuesday, stronger than expected but above the psychological barrier of 7 per dollar for the fourth consecutive session.

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