EUROPE MARKETS: European Markets Struggle In The Wake Of Last Week's Big U.S. Losses
11 December 2018 - 12:04AM
Dow Jones News
By Emily Horton
FTSE rises as pound falls on report crucial Brexit vote
canceled
European markets traded lower on Monday, as investors failed to
shake a hangover from last week's selloff in the U.S., with signals
of slowing growth in France adding to the worries. Among individual
stocks, BASF AG tumbled on a profit warning.
A decline for sterling gave the FTSE 100 a lift after a report a
key parliamentary vote on Brexit has been canceled.
What are markets doing?
The Stoxx Europe 600 was down 0.7% to 343.04, after closing down
3.37% last week, the biggest percentage decline since the week
ending October 12 2018.
Germany's DAX 30 dipped by 0.5% to 10,735.94, while France's CAC
40 eased 0.5% to 4,786.15.
The U.K.'s FTSE 100 rose 0.1% to 6,785.86. Italy's FTSE MIB
Italy index was off 0.5% to 18,647.94.
The euro rose to $1.1413, from $1.1387 late Friday in New York,
while the pound tumbled to $1.2668 from $1.2731 late on Friday in
New York.
What is driving the market?
Sterling slid after a midday report from Bloomberg that U.K.
Prime Minister May would cancel a key parliamentary vote
(http://www.marketwatch.com/story/british-pound-falls-on-report-uks-may-calling-off-brexit-vote-2018-12-10)
expected Tuesday on her Brexit plan for and reschedule it. A
stronger pound can weigh on the FTSE 100, as the index's
multinational companies generate most of their sales in other
currencies, and the reverse works true as well.
Earlier Monday, the European Court of Justice ruled on Monday
that the U.K. could officially cancel Brexit without the permission
of the other 27 EU member states.
On the economic front, Germany's Federal Statistical Office
released showing that the county's trade surplus with the rest of
the world narrowed
(http://www.marketwatch.com/story/germanys-trade-surplus-narrows-in-october-2018-12-10).
Blaming protests across the country that have cut into industrial
production for a number of sectors, the Bank of France said the
French economy will grow slower
(http://www.marketwatch.com/story/french-protests-blamed-for-cut-in-growth-forecast-2018-12-10)
than originally projected.
Global growth concerns and worries that the U.S. and China will
struggle to meet common ground on trade were also hanging over
stocks, with U.S. stock futures lower, while weaker oil prices also
weighed on heavyweight energy companies.
What stocks are active?
Heavyweight banking stocks were in the red, with Banco Santander
SA (SAN) (SAN.MC) and UBS Group AG (UBS) down 1% each.
Major oil companies fell as crude prices came under pressure,
with Royal Dutch Shell PLC (RDSA.LN)(RDSA.LN) down 1.3% and Total
SA (TOT) (TOT) off 0.9%.
Shares of BASF SE (BAS.XE) slid by nearly 5%, after the German
chemical group issued a profit warning
(http://www.marketwatch.com/story/basf-shares-drop-after-profit-warning-2018-12-10-44851426)
on Monday.
Pharmaceutical stocks were moving higher, with AstraZeneca PLC
(AZN.LN) up just over 1% and GlaxoSmithKline PLC (GSK.LN) up 1.6%.
German health care company Fresenius SE & Co. KGaA (FRE.XE) up
4.2%.
(END) Dow Jones Newswires
December 10, 2018 07:49 ET (12:49 GMT)
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