EUROPE MARKETS: European Stocks End Higher As Economic Activity Hovers At 6-year High
May 23 2017 - 12:49PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Nokia settles disputes with Apple
European stocks closed in the green on Tuesday, with French
shares among the biggest advancers as eurozone economic activity
remained at a six-year high.
The Stoxx Europe 600 rose 0.2% to finish at 392.02, rebounding
after Monday's 0.1% dip
(http://www.marketwatch.com/story/european-stocks-edge-higher-as-us-political-commotion-subsides-2017-05-22).
But travel-related shares edged lower following a suspected
terror attack by a suicide bomber in Manchester, England, which
killed 22 people, including children, and injured 59
(http://www.marketwatch.com/story/death-toll-rises-to-22-in-suspected-suicide-bombing-in-manchester-2017-05-23)
as people left an Ariana Grande concert on Monday night.
Within the Stoxx 600, shares of amusement parks operator Merlin
Entertainments PLC (MERL.LN) fell 1.5% and InterContinental Hotels
Group PLC (IHG) slipped 0.2%. But British Airways parent
International Consolidated Airlines Group SA (IAG.LN) closed up
0.5% and French hotel chain operator Accor SA (AC.FR) tacked on
0.4%.
Political campaigning ahead of the U.K.'s general election on
June 8 was suspended Tuesday. The pound was recently down slightly
to $1.2982, while the U.K.'s FTSE 100 finished 0.2% lower at
7,485.29
(http://www.marketwatch.com/story/cautious-start-to-trade-in-uk-stocks-after-suspected-terror-attack-in-manchester-2017-05-23).
Eurozone growth: In Paris, the CAC 40 rose 0.5% to end at
5,348.16, gaining momentum after IHS Markit said a preliminary
reading of French services activity in May rose to 58.0, above the
FactSet consensus of 56.8. That helped the composite index reach a
72-month high, although manufacturing output was at a two-month
low. A reading of 50 or greater indicates economic expansion.
The figures indicated an 11th straight month of private sector
growth in Europe's third-largest economy, said IHS Markit.
Overall, the IHS Markit eurozone PMI held a six-year high in
May, at 56.8.
In Germany, the flash manufacturing PMI hit a 73-month high at
59.4, above an estimate of 58.0, even as services activity was at a
three-month low. Separately, the closely watched Ifo business
climate survey climbed to 114.6, an all-time high.
"Today's strong German data add to the evidence that, not only
the German economy, but the entire eurozone economy could become
the positive growth surprise of 2017," said Carsten Brzeski, chief
economist at ING, in a note.
"This sentiment is also spreading across financial markets, with
many market participants now realizing that the eurozone economy
had been written off too early," he said. However, "be aware of the
sugar rush. Despite the cyclical upswing, structural problems in
the eurozone economy have not disappeared."
Germany's DAX 30 index --which is made up of companies that are
heavily dependent on exports--was up 0.3% to close at 12,659.15,
and it has recently hit records
The euro traded at $1.1201, down from $1.1238 late Monday in New
York after earlier gains faded.
Stock movers: Nokia Corp. (NOK) (NOK) climbed 6.4% after the
Finnish tech company and Apple Inc. (AAPL) settled a long-running
intellectual-property dispute and agreed to a multiyear patent
license
(http://www.marketwatch.com/story/nokia-apple-end-disputes-enter-patent-license-2017-05-23).
Financial details weren't disclosed, but Nokia will receive an
upfront cash payment from Apple along with additional revenue
during the term of the agreement.
Severn Trent PLC shares (SVT.LN) rose 1.8% after the British
water company upgraded its dividend policy
(http://www.marketwatch.com/story/severn-trent-earnings-up-upgrades-dividend-policy-2017-05-23)
and posted a rise in fiscal 2017 earnings.
(END) Dow Jones Newswires
May 23, 2017 12:34 ET (16:34 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Aug 2024 to Sep 2024
FTSE 100
Index Chart
From Sep 2023 to Sep 2024