EUROPE MARKETS: European Stocks Face 6th Day Of Losses As Euro Marches Higher
November 14 2017 - 6:19AM
Dow Jones News
By Carla Mozee, MarketWatch
Shared currency rises on back of stronger-than-expected German
GDP reading
Major European stock indexes slipped Tuesday, with the regional
benchmark headed for a sixth straight loss, as the euro hit its
highest level in three weeks on the back of stronger-than-expected
German economic growth figures.
What markets are doing: In Frankfurt, the DAX 30 index fell
fractionally to 13,068.61, and France's CAC 40 gave up 0.1% to
5,338.72.
But the U.K.'s FTSE 100 was higher by 0.1% at 7,424.84, and
Spain's IBEX held up 0.1% at 10,054.00.
Looking at the pan-European benchmark, the Stoxx Europe 600 was
off 0.2% at 385.34. The move came as Swiss shares as measured by
the SMI edged down 0.1% to 9,153.03. Monday's decline marked the
longest run of losses since late May.
The euro traded at $1.1716, rising from $1.1669 late Monday in
New York. Against the pound, the shared currency fetched GBP0.8948,
up from GBP0.8843 on Friday.
What's driving markets: The euro climbed above $1.1700 against
the dollar for the first time since Oct. 26, according to FactSet
data. That puts the euro up by roughly 0.6% on a week-to-data
basis.
Strength in the euro puts pressure on shares of European
exporters, as it makes their products more expensive for holders of
other currencies. On the German index, shares of Adidas AG (ADS.XE)
shed 0.2% and Volkswagen AG (VOW.XE) (VOW.XE) lost 0.3%.
Investors bumped up the euro after Destatis said Germany's gross
domestic product rose by 3.3% in the third quarter
(http://www.marketwatch.com/story/german-gdp-grows-33-outstripping-forecasts-2017-11-14),
outstripping expectations for 2.4% growth. Germany is Europe's
largest economy.
What strategists are saying: "Stock markets have seen tentative
buying this morning, as they look to recover from a tough few days.
However, with the central banking cabal of Yellen, Kuroda, Draghi
and Carney to speak today, it is not surprising to see the main
indices mostly tread water so far," said Chris Beauchamp, chief
market analyst at IG, in a note.
"Germany's economic success story goes on and on and on," said
ING chief economist Carsten Brzeski, noting it "remains the
high-flyer of the eurozone."
"Looking ahead, there is very little reason to fear a sudden end
to the current performance. In fact, today's drivers of the economy
should also be tomorrow's drivers of the economy. Low interest
rates should further support activity in the construction sector,
boost private consumption and contribute to the ongoing investment
upswing," Brzeski said in a note.
Central bankers were also in focus, as European Central Bank
President Mario Draghi, Bank of England Gov. Mark Carney, Federal
Reserve Chairwoman Janet Yellen and Bank of Japan Gov. Haruhiko
Kuroda appeared on a panel Tuesday morning in Brussels.
The leaders of the four global heavyweights of central banks
were sharing their views on communicating with investors and the
markets at a moderated discussion at the European Central Bank's
headquarters.
Stock movers: Infineon Technologies AG (IFX.XE) shares jumped
5.4% on the DAX 30. The chip maker's net profit for the fourth
quarter fell 22%
(http://www.marketwatch.com/story/infineon-net-profit-down-22-on-weaker-dollar-2017-11-14)
as the company faced a strong headwind from dollar
depreciation.
Henkel AG & Co. (HEN.XE) shares dropped 3.4% after the
company said third-quarter net profit fell to 564 million euros
(http://www.marketwatch.com/story/henkel-profit-falls-on-fx-effects-raises-forecast-2017-11-14)($657.4
million) from EUR576 million a year ago. The maker of Dial soap and
Purex laundry detergent raised its forecast for adjusted
earnings.
Tesco shares (TSCO.LN) climbed 5.1% after the U.K. Competition
and Markets Authority provisionally cleared a merger between the
supermarket chain and wholesaler Booker Group (BOK.LN) . Booker's
shares , which trade off the FTSE 100, climbed 5.2%.
Vodafone (VOD.LN) (VOD.LN) jumped 5.2% after the mobile
telecommuncations company raised its outlook for fiscal 2018
(http://www.marketwatch.com/story/vodafone-pretax-profit-up-55-lifts-2018-outlook-2017-11-14),
with pretax profit for the first half rising 55%
year-over-year.
Economic data: U.K. inflation came in at 3% in October
(http://www.marketwatch.com/story/uk-inflation-stays-at-5-year-high-of-3-2017-11-14),
slightly below expectations for a 3.1% print.
(END) Dow Jones Newswires
November 14, 2017 06:04 ET (11:04 GMT)
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