EUROPE MARKETS: Europe Stocks Set To Log Weekly Gains, But Danske Bank Under Pressure
14 September 2018 - 11:39PM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Investec surges after announcing spinoff of asset-management
unit
European stocks were set to close the week on a positive note
Friday, though losses in the financial sector were keeping a lid on
gains as Danske Bank AS tumbled on news of a U.S. probe.
What are markets doing?
The Stoxx Europe 600 rose 0.1% to 377.04, after Thursday's loss
of 0.2%.
(http://www.marketwatch.com/story/european-stocks-rise-led-by-surge-for-biotech-galapagos-2018-09-12)
(http://www.marketwatch.com/story/european-stocks-rise-led-by-surge-for-biotech-galapagos-2018-09-12)For
the week, the pan-European gauge was so far up 0.9%, but down just
over 3% year to date.
Germany's DAX 30 rose 0.2% to 12,003.27, while France's CAC 40
rose 0.2% to 5,340.15. The U.K.'s FTSE 100 was up 0.2% to
7,299.32.
The euro traded at $1.1691 from $1.1691 late Thursday, while the
pound was changing hands at $1.3101 from $1.3109.
What is driving the market?
Europe stocks took inspiration from a largely positive session
across Asia
(http://www.marketwatch.com/story/asian-markets-continue-to-rise-as-nikkei-nears-7-month-high-2018-09-13),
and an upbeat one in the U.S. on Thursday
(http://www.marketwatch.com/story/us-stock-futures-inch-higher-as-sp-500-tries-for-4th-up-day-in-a-row-2018-09-13).
U.S. stock futures pointed to a modestly higher session for
Friday.
Growing upbeat sentiment surrounding global trade were also
helping to underpin gains. A fresh round of trade talks could take
place later this month after the White House reportedly extended an
invitation to Chinese officials
(http://www.marketwatch.com/story/us-offers-renewed-trade-talks-with-china-to-avert-new-tariffs-2018-09-12).
As well the Turkish central bank's move to bolster its currency on
Thursday also helped foster some appetite for risk.
Economic data from the U.S. was swinging into focus in the
afternoon, as data showed retail sales for August rising 0.1% by
the smallest amount in six months
(http://www.marketwatch.com/story/retail-sales-grow-by-smallest-amount-in-six-months-but-spending-primed-to-rebound-2018-09-14).
In the U.K., Brexit was in the headlines again after Bank of
England Gov. Mark Carney reportedly told Prime Minister Theresa May
and her cabinet on Thursday that a no-deal exit from the European
Union would cripple the country's economy
(http://www.marketwatch.com/story/boes-carney-warns-no-deal-brexit-could-cripple-uk-report-2018-09-14).
Read:BOE's Carney warns U.K. could lose 10% of its jobs to
automation
(http://www.marketwatch.com/story/boes-carney-uk-could-lose-10-of-jobs-to-robots-2018-09-14)
Don't miss:A top London startup's CEO flags the biggest Brexit
threat to his industry
(http://www.marketwatch.com/story/a-top-london-startups-ceo-flags-the-biggest-brexit-threat-to-his-industry-2018-08-06)
What are strategists saying?
"Encouraging news that Trump's administration seeks to start
negotiating with China again to resolve their trade differences is
helping investors' sentiment," said Konstantinos Anthis, head of
research at ADS Securities, in a note to clients.
Stock movers
Banks were in the spotlight, with Danske Bank AS (DANSKE.KO)
dropping 3% after The Wall Street Journal reported
(https://www.wsj.com/articles/u-s-probes-danske-bank-over-money-laundering-allegations-1536924529?mod=searchresults&page=1&pos=2)
that the U.S. was probing money laundering allegations. Citigroup
Inc.(C) and Deutsche Bank AG (DBK.XE)(DBK.XE) were also identified
by that whistleblower as being involved in the transactions, the
report said.
Shares of Deutsche Bank fell 0.5% and Citigroup was off 0.2% in
premarket trading in the U.S.
Shares of Investec PLC (INVP.LN) surged 7%, the best performer
in the Stoxx Europe 600 after the investment bank said it would
spin off and separately list
(http://www.marketwatch.com/story/investec-to-spin-off-asset-management-business-2018-09-14-34852831)
its asset-management unit.
Ryanair Holdings PLC (RYAAY) rose 1.8%. The airline said it was
close to reaching a collective labor agreement
(http://www.marketwatch.com/story/ryanair-nears-agreement-with-italy-cabin-crew-2018-09-14)
with its Italian-based cabin crew.
(END) Dow Jones Newswires
September 14, 2018 09:24 ET (13:24 GMT)
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