EUROPE MARKETS: European Stocks End Higher In Wake Of German Political Turmoil
November 20 2017 - 12:30PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Merkel says she would prefer a new election over a minority
government
European stocks finished higher Monday, with German equities
recovering following the collapse of talks to form a coalition
government for the eurozone's largest economy.
What markets are doing: In Frankfurt, the DAX 30 index rose 0.5%
to end at 13,058.66, turning around from a decline of 0.5%.
France's CAC 40 was up 0.4% to close at 5,340.45, and the U.K.'s
FTSE 100 edged up 0.1% to end at 7,389.46.
The Stoxx Europe 600 tacked on 0.7% to finish at 386.39.
The euro bought $1.1741 after hitting an intraday low of $1.1723
and an intraday high of $1.1809. The shared currency late Friday in
New York fetched $1.1793. Against the pound, the euro traded hands
at GBP0.8864 versus GBP0.8923 on Friday.
What's moving markets: Stocks started in the red after talks to
form a "Jamaica" governing coalition of parties in Germany broke
down. On Sunday, the pro-business Free Democratic Party ended talks
about forming a coalition government
(http://www.marketwatch.com/story/euro-plummets-as-uncertainty-in-germany-rattles-markets-2017-11-19)
with Merkel's Christian Democratic Union and the center-left
Greens.
But German equities started to turn higher and the euro came off
session lows against the U.S. dollar following a Monday report that
the FDP said it would support a minority government. German
President Frank-Walter Steinmeier urged the political parties
(http://www.marketwatch.com/story/german-president-urges-parties-to-cooperate-avoid-new-election-2017-11-20-8915243)
to return to the negotiating table, rather than calling new
elections.
The breakdown in talks puts Merkel's fourth term as chancellor
in doubt, as well as raising the prospect of a minority government
and perhaps eventually a new general election if the situation
can't be resolved. Merkel late Monday said she would prefer a new
election
(http://www.marketwatch.com/story/germanys-merkel-would-prefer-new-election-over-minority-government-2017-11-20)
over a minority government.
What strategists are saying: "The DAX saw major volatility today
after the coalition talks in Germany ended badly," said David
Madden, a CMC Markets UK analyst, in a note.
"This casts doubt over the future of German politics, as Angela
Merkel's Christian Democratic Union party may be forced to form a
minority government or call another general election."
"The Germany equity market made a remarkable swing from negative
to positive in the day, and the slide in the euro helped it,"
Madden added.
Stock movers: Altice NV (ATC.AE) shares jumped 5.2% after the
French telecom said it has no plans to raise capital
(http://www.marketwatch.com/story/altice-says-it-has-no-plans-to-raise-capital-2017-11-20-14855247).
The company recently announced a management shake-up
(http://www.marketwatch.com/story/altice-replaces-ceo-combes-in-exec-shakeup-2017-11-10)in
the wake of disappointing third-quarter results and a slide in its
share price.
RWE AG (RWE.XE) rose 2.8% following a Reuters report over the
weekend that the German utility is considering ways to cut its
stake of EUR16.8 billion ($19.8 billion) in its Innogy retail
business
(https://www.reuters.com/article/innogy-ma-enel/rwe-rallies-on-hopes-for-innogy-deal-less-stringent-german-climate-policy-idUSL8N1NQ1Z4).
One option includes doing a deal with Italy's Enel (ENEL.MI), the
report said.
NEX Group PLC (NXG.LN) fell 0.8%, but was off session lows, as
the financial trading company cut its interim dividend
(http://www.marketwatch.com/story/nex-group-first-half-profit-falls-cuts-dividend-2017-11-20)
and said profit fell in the first half of fiscal 2018.
Mediclinic International PLC (MDC.LN) fell 3.1% after the
private hospital company said it's ditching plans to make an offer
(http://www.marketwatch.com/story/mediclinic-no-longer-plans-to-make-offer-for-spire-2017-11-20)
to buy Spire Healthcare Group PLC (SPI.LN). Spire shares fell 8.4%
on the midcap FTSE 250 index.
Roche Holding AG (ROG.EB) jumped 5.9% after the drugmaker
outlined positive results
(http://www.marketwatch.com/story/roche-shares-rise-on-positive-trial-results-2017-11-20)
from two major late-phase trials: one for its hemophilia treatment
Hemlibra and the other for Tecentriq, a cancer therapy.
(END) Dow Jones Newswires
November 20, 2017 12:15 ET (17:15 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