UKX FTSE 100 Index

By Ryan Vlastelica

Euro-area annualized inflation was 2.1% in July, up from 2.0%

European stocks were trading lower late-morning Friday as investors worries about the health of Italy's banks and as a reading of inflation came in line with expectations, with investors finding few reasons to buy going into the weekend, particularly after an extended period of weakness.

Major European indexes are poised for weekly losses, with some gauges set for their third straight down week. U.K. stocks are on track for their worst week in months.

Where are the major benchmarks trading?

The Stoxx Europe 600 fell 0.3% to 380.47, after it rose 0.5% on Thursday.

For the week, the pan-European index is down 1.4% and on track for its third straight negative week. The recent losses, which include the gauge's biggest one-day fall (http://www.marketwatch.com/story/european-stocks-inch-higher-as-turkish-lira-extends-rebound-2018-08-15) since June 25 on Wednesday, have come on concerns over Turkey's currency crisis, as well as weak commodity prices.

Germany's DAX 30 was trading 0.4% lower at 12,187.81, after finishing up 0.6% in the previous session.

The DAX is also poised for its third straight down week, its longest stretch since February. As of Thursday's close, it is down 1.9% for the week.

France's CAC 40 fell 0.2% at 5,337.25, following Thursday's rise of 0.8%. It is down 1.4% on the week, its first three-week decline since June.

The U.K.'s FTSE 100 was off 0.1% at 7,546.01, after snapping a 5-session skid on Thursday with a 0.8% gain. (http://www.marketwatch.com/story/uk-stocks-gain-in-rebound-from-previous-sessions-drop-2018-08-16)The FTSE is down 1.6% thus far this week, its biggest weekly decline since March. On Thursday, the index rose and put end to its longest streak of daily declines since February (http://www.marketwatch.com/story/uk-stocks-gain-in-rebound-from-previous-sessions-drop-2018-08-16).

The euro rose slightly against the dollar, changing hands at $1.1383, compared with $1.1378 late Thursday in New York. Thus far this year, the euro is down more than 5% against the buck.

What is driving the market?

Recent trading has been driven by the currency crisis in Turkey, as well as uncertainty regarding trade policy with respect to the U.S. and its major trading partners. Both issues will likely continue to dictate market sentiment, and while there were few developments in either issue overnight, they have recently shown some signs of stability.

On Thursday, it was reported (http://www.marketwatch.com/story/china-says-it-will-resume-trade-talks-with-us-2018-08-16)that the Chinese Commerce Ministry would send a delegation to the U.S. later this month to resume trade talks, the first such meeting since July.

Euro-area annualized inflation (http://ec.europa.eu/eurostat/documents/2995521/9105279/2-17082018-AP-EN.pdf/f1680451-6124-493f-9ba8-c38f47b69776) was 2.1% in July, up from 2.0% in June 2018, while month-over-month eurozone consumer-price inflation for July fell 0.3%, matching expectations.

Italy's banking sector was in focus amid the county's budget concerns, with UniCredit SpA shares (UCG.MI) down 1.1%, Banco BPM S.p.A.s stock (BAMI.MI) down 3.8%, while shares of Unione di Banche Italiane SpA also slumped by 3.4%.

Which other stocks are in focus?

A.P. Moeller-Maersk A/S (MAERSK-B.KO) shares rose 3.1%, after it reported its second-quarter results and said it would seek a separate listing for its drilling unit next year (http://www.marketwatch.com/story/maersk-seeks-listing-for-drilling-unit-shares-up-2018-08-17).

Rovio Entertainment Oyj's stock (ROVIO.HE), the developer behind the mobile game "Angry Birds," slipped by 0.3% after it reported a drop in its second-quarter earnings but stood by its full-year outlook (http://www.marketwatch.com/story/rovio-shares-rise-after-results-outlook-2018-08-17).

Royal Bank of Scotland Group PLC (RBS.LN) said Ewen Stevenson, the firm's chief financial officer, would be stepping down on Sept. 30 (http://www.marketwatch.com/story/rbs-cfo-to-leave-sept-30-names-interim-cfo-2018-08-17). Katie Murray, its deputy chief financial officer, will take over the role on an interim basis while a search for a permanent successor is performed. Shares declined by 0.2%.

Koninklijke Vopak N.V.'s stock (VPK.AE) fell 6.4% after it reported a drop in its second-quarter earnings and revenue (http://www.marketwatch.com/story/vopak-reports-drop-in-q2-earnings-2018-08-17).

(END) Dow Jones Newswires

August 17, 2018 06:50 ET (10:50 GMT)

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