EUROPE MARKETS: European Bourses Edge Mostly Higher As Strong Earnings Remain In Focus
18 October 2018 - 09:15PM
Dow Jones News
By Mark DeCambre, MarketWatch
Europe's main equity benchmarks traded cautiously higher
Thursday--though Italy's stock index was under pressure--as
investors appeared to focus on better-than-expected corporate
results rather than weakness in U.S. and Asian markets.
An announced billion-dollar pharmaceutical tie-up also was
helping to buttress market sentiment.
What are markets doing?
The pan-European Stoxx Europe 600 rose 0.2% to 364.10
(http://www.marketwatch.com/story/european-stocks-see-bounce-but-on-track-for-big-weekly-declines-2018-10-12),
the U.K.'s FTSE 100 added 0.2% at 7,064.19, as Brexit worries
continued to influence trade.
Germany's DAX 30 advanced by 0.3% to 11,742.54, while France's
CAC 40 picked up 0.1% to reach 5,151.31.
Italy's FTSE MIB Italy index gave up 0.3% to 19,395.47, amid
turmoil over the country's budgetary negotiations with the European
Union.
The euro was trading at $1.1524, compared with $1.1502 late
Wednesday in New York. The British pound was changing hands at
$1.3112, versus $1.3114 in the previous session.
Read: With 'no-deal' Brexit risk on the rise, analysts see
uncertain path for pound
(http://www.marketwatch.com/story/with-no-deal-brexit-risk-on-the-rise-analysts-see-uncertain-path-for-pound-2018-10-16)
What is driving the market?
Market participants pointed to strength in a recent spate of
earnings as one reason that European equity indexes were tracking
slightly higher, despite concerns around Britain's continuing
efforts to extricate itself from the EU, which appear to have been
delayed amid a border impasse.
U.K. Prime Minister Theresa May on Wednesday during a closely
watched summit in Brussels suggested that she was considering an
extending Brexit transition period as the British leader failed to
forge a new trade and customs pact as Britain is set to exit from
the EU in March. An extension could see Britain remain under EU
rules until 2021 or longer, according to reports.
A so-called no-deal scenario
(http://www.marketwatch.com/story/with-no-deal-brexit-risk-on-the-rise-analysts-see-uncertain-path-for-pound-2018-10-16)
is looking increasingly likely European Council President Donald
Tusk said earlier in the week, saying he harbored "no grounds for
optimism (https://www.bbc.co.uk/news/uk-politics-45871254)." A
no-deal could roil eurozone markets and produce sharp swings in the
British pound.
Meanwhile, investors also watched discussions between
antiestablishment 5 Star Movement and the far-right League over a
full draft budget law that will be sent to the Italian parliament
by Saturday, but which could draw anger from EU officials because
it would increase the country's deficit and run afoul of EU rules
for its members.
What are strategists saying?
"Meanwhile in the Eurozone, besides Brexit, Italy's spending
plans is another worrying issue for traders as recent comments from
EU officials including the president of the European Commission,
Jean-Claude Junker downplayed hopes for a breakthrough," wrote
Christina Parthenidou, investment analyst at XM in a Thursday
research note.
What stocks are moving
Shares of Paris-based Carrefour SA(CA.FR) led pan-European
gainers, rising more than 7%, after the supermarket company
reported better-than-expected third-quarter sales
(http://www.marketwatch.com/story/carrefour-shares-surge-after-sales-update-2018-10-18).
Unilever PLC's stock fell (ULVR.LN) on Thursday even as the
maker of Breyers ice cream and Dove shampoo sold more products at
higher prices, helping it deliver stronger third-quarter revenue
growth
(http://www.marketwatch.com/story/unilever-revenue-up-on-better-volumes-pricing-2018-10-18).
Novartis AG(NOVN.EB) raised its outlook on Thursday, and
announced it would acquire radiopharmaceuticals company
(http://www.marketwatch.com/story/novartis-lifts-view-announces-21b-endocyte-deal-2018-10-18)
Endocyte Inc. (ECYT) in a deal that values it at $2.1 billion,
Novartis's latest effort to transform into a focused-medicines
company.
(END) Dow Jones Newswires
October 18, 2018 06:00 ET (10:00 GMT)
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