EUROPE MARKETS: European Stocks Inch Higher As Traders Wait For Brexit Kickoff
29 March 2017 - 8:31PM
Dow Jones News
By Sara Sjolin, MarketWatch
Article 50 is set to be triggered around lunchtime
European stocks rose for a second straight day on Wednesday, but
investors seemed to take a cautious stance as the U.K. prepared to
trigger Brexit negotiations with the rest of the EU.
The Stoxx Europe 600 index added 0.1% to 377.84, building on a
0.6% rally from Tuesday
(http://www.marketwatch.com/story/european-stocks-bounce-back-as-worries-over-trump-rally-recede-2017-03-28).
The positive moves come after a strong finish in the U.S., where
the Dow Jones Industrial snapped an eight-day losing streak and
closed 0.7% higher after some better-than-expected economic data
(http://www.marketwatch.com/story/dow-poised-to-rise-for-first-time-in-9-sessions-2017-03-28).
However, the U.K.'s Brexit moves were hanging over European
markets on Wednesday. On Tuesday evening, U.K. Prime Minister
Theresa May signed a letter invoking Article 50 of the Treaty of
Lisbon, which will formally begin the country's exit from the
European Union.
The letter is expected to be hand-delivered to Brussels around
lunchtime by the British ambassador to the EU, Tim Barrow. Soon
after that, May plans make a statement to parliament to confirm
Article 50 has been triggered and that the countdown to the
two-year divorce negotiations has begun.
(https://twitter.com/eucopresident/status/846983434484494338)
"Today marks a turning of the page and a new chapter on the
U.K.'s relationship with the European Union. No one knows what lies
ahead over the next two years, and there will be many twists and
turns along the way, but one thing is certain, a deal is in the
best interests of both sides," said Michael Hewson, chief market
analyst at CMC Markets, in a note.
Read:How to trade the pound as Theresa May pulls the Brexit
trigger
(http://www.marketwatch.com/story/avoid-being-short-with-the-crowd-how-to-trade-the-pound-as-may-pulls-brexit-trigger-2017-03-28)
Read also:Three ways Article 50 will change Britain -- and
Europe
(http://www.marketwatch.com/story/three-ways-article-50-will-change-britain-and-europe-2017-03-29)
"In the short term, nothing much is likely to change,
particularly at a politically sensitive time for Europe with French
and German election campaigns already well under way, which means
any market reaction is likely to be fairly muted," he added.
The pound traded at $1.2444
(http://www.marketwatch.com/story/british-pound-under-pressure-ahead-of-brexit-trigger-2017-03-29),
down from $1.2450 late Tuesday in New York.
Individual indexes: The sterling weakness helped curb losses for
the FTSE 100 index , which is made up largely of companies that
generate the bulk of their earnings overseas. The index was down
less than 0.1% at 7,340.60
(http://www.marketwatch.com/story/uk-stocks-rise-as-brexit-talks-set-to-kick-off-2017-03-29).
Germany's DAX 30 index gained 0.5% to 12,205.96, while France's
CAC 40 index rose 0.2% to 5,057.91.
Stock movers: Posting the biggest loss in the Stoxx 600, shares
of Scout24 AG (G24.XE) slid 6.4% after a disappointing guidance
from the online marketplace.
Shares of BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) climbed
1.3% after the mining giant said it's considering a new iron-ore
investment
(http://www.marketwatch.com/story/bhp-billiton-looks-at-aussie-iron-ore-investment-2017-03-29)
in Australia.
Economic data:French consumer confidence
(http://www.marketwatch.com/story/french-consumer-confidence-unchanged-in-march-2017-03-29)
stood at 100 in March, Insee reported. That was the same reading as
in February, undershooting analysts' expectations.
(END) Dow Jones Newswires
March 29, 2017 05:16 ET (09:16 GMT)
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