By Carla Mozee, MarketWatch
Adyen soars in debut; eurozone industrial production slumps
A broad gauge of European stocks finished modestly higher
Wednesday, making some headway after swinging in and out of the
red, as investors looked ahead to the U.S. Federal Reserve's latest
monetary policy decision. An update from the European Central Bank
set for Thursday also was in focus for investors.
How did markets perform?
The broader Stoxx Europe 600 Index closed up 0.2% at 388.25, led
lower by the telecom and oil and gas sectors. But the tech and
basic materials sectors led advancers. On Tuesday, the pan-European
index fell 0.1%
(http://www.marketwatch.com/story/european-stocks-step-lower-as-trump-kim-pledge-lacks-some-detail-2018-06-12).
German and Italian stocks were the key contributors to
Wednesday's gain. Germany's DAX 30 index rose 0.4% to 12,890.58,
pushing past earlier weakness. Italy's FTSE MIB index also finished
up by 0.4% to reach 22,216.18.
Read: The ECB can't rescue Italy from its next crisis
(http://www.marketwatch.com/story/italy-never-should-have-joined-the-euro-and-the-ecb-cant-rescue-it-from-its-next-crisis-2018-06-11)
But France's CAC 40 index shed less than 1 point to end at
5,452.73, and Spain's IBEX 35 fell 0.2% to 9,899.10. The U.K.'s
FTSE 100 lost less than 1 point, closing out the session at
7,703.71.
The euro traded at $1.1785, slightly up from $1.1745 late
Tuesday in New York.
What's driving markets?
European stocks overall ran into a headwind in the form of data
showing industrial production in the eurozone fell by a
larger-than-expected 0.9% rate in April
(http://www.marketwatch.com/story/eurozone-industrial-production-slides-ahead-of-ecb-2018-06-13).
That's underscored some questions about the strength of the economy
at a time when the European Central Bank is discussing when to end
its EUR2.5 trillion ($2.95 trillion) program of bond buying, or
quantitative easing.
Investors are expecting to hear more about the timing when the
ECB releases its statement Thursday at 12:45 London time, or 7:45
a.m. Eastern Time. ECB President Mario Draghi will hold a press
conference at 1:30 London time, in Riga, Latvia.
Investors are in the thick of central bank action for the week.
The Fed is expected to issue its monetary policy decision
(http://www.marketwatch.com/story/fed-decision-expected-to-overwhelm-trade-north-korea-to-drive-bond-market-2018-06-11)
after the close of European trade on Wednesday, and moves by the
U.S. central bank are closely watched as they have an impact on
interest rates and investment decisions world-wide. The Bank of
Japan is scheduled to release its monetary policy update on
Friday.
Don't miss: Investors brace for ECB 'close call' on when to
start winding down QE
(http://www.marketwatch.com/story/investors-brace-for-ecb-close-call-on-when-to-start-winding-down-quantitative-easing-2018-06-12)
Fed in focus
The Fed, led by Chairman Jerome Powell, should issue its target
range for the federal-funds rate at the end of its two-day meeting
on Wednesday. Investors are pricing in expectations for a rise of
25 basis points to 1.75% to 2%, from the current range of 1.5% to
1.75%. That would be the second U.S. interest rate hike this year.
The decision is due at 7 p.m. London time, or 2 p.m. Eastern
Time.
Check out:5 challenging questions Fed chief Powell may encounter
(http://www.marketwatch.com/story/5-challenging-questions-fed-chief-powell-may-encounter-2018-06-12)
And see: How stock investors can profit from this week's Fed
meeting
(http://www.marketwatch.com/story/how-stock-investors-can-profit-from-this-weeks-fed-meeting-2018-06-12)
What strategists are saying
"We see the case for the [Fed] to have a neutral- to hawkish-
accompanying statement, as the U.S. economy had favorable financial
releases recently," said Peter Iosif, senior research analyst at
IronFX.com
"Also, should the Fed's forecasts alter, based on the recent
acceleration of the inflation rate and the favorable employment
report, we could see the dot plot implying a four rate hike path in
2018," Iosif said.
Stock movers
Shares of European payment processor Adyen NV (ADYEN.AE) doubled
during their trading debut on the Euronext Amsterdam exchange. The
shares, priced at EUR240 each, opened at EUR400. The stock hit an
intraday high of EUR503.90 and ended at EUR455.00.
Read:Adyen IPO: 5 things to know about the PayPal rival
(http://www.marketwatch.com/story/adyen-ipo-5-things-to-know-about-the-paypal-rival-2018-06-11)
Just Eat PLC shares (JE.LN) tumbled 4.7% after rival Deliveroo
late Tuesday outlined expansion plans, including signing up about
5,000 more U.K. restaurants who've opted to use its fleet of food
couriers.
Aeroports de Paris SA (ADP.FR) jumped 6% as the French
government said it's planning to sell stakes in the airport
operator and other companies in a new round of privatization.
(http://www.marketwatch.com/story/france-to-launch-more-privatizations-les-echos-2018-06-13)
Industria de Diseno Textil SA (ITX.MC), or Inditex, swung
higher, ending up 3.5%. The Spanish parent company of Zara, an
apparel retailer, said same-store sales grew at a slightly slower
rate of 5%
(http://www.marketwatch.com/story/zara-parent-inditexs-sales-buck-industry-trend-2018-06-13)
in the latest quarter, compared with a year earlier. But its profit
margin unexpectedly improved.
Dixons Carphone PLC (DC.LN) shares fell 2.8%. The
consumer-electronics retailer said it has suffered a data breach
involving 1.2 million personal records
(http://www.marketwatch.com/story/dixons-carphone-reveals-data-breach-affecting-59-million-payment-cards-2018-06-13)
and 5.9 million payment cards.
Glencore PLC shares (GLEN.LN) leapt 3.8% after the mining
heavyweight unveiled a $5.6 billion restructuring of its troubled
Congo copper company, Katanga Mining Ltd
(http://www.marketwatch.com/story/glencores-katanga-to-issue-56-bln-in-stock-2018-06-13).
The move resolves a dispute with Congo's state-run mining
company.
Economic data
U.K. consumer-price inflation was at 2.4% in May, the Office for
National Statistics said, matching a FactSet consensus estimate.The
Bank of England takes into account that data when setting monetary
policy.
But a recent run of than weaker-than-expected economic figures
have raised questions about when the U.K. central bank will resume
lifting interest rates. Its last rate hike of 25 basis points to
0.5% was in November, the first increase in a decade.
Brexit bill under debate
Debate continued for a second day in the U.K. House of Commons
on the bill that takes the U.K. out of the European Union. A key
amendment, put forth by the House of Lords, was defeated Tuesday,
considered a win for Prime Minister Theresa May. That amendment
would have given Parliament the final say on terms of the U.K.'s
exit from the EU if no deal could be reached with European Union
negotiators.
Prime Minister Theresa May's Conservative government still runs
the risk of losing its bid to overturn some of the amendments if
enough Conservative lawmakers decide to vote alongside opposition
parties.
(END) Dow Jones Newswires
June 13, 2018 13:32 ET (17:32 GMT)
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