EUROPE MARKETS: European Stocks Get A Lift From Consumer Shares, Tech Recovery
June 20 2017 - 5:56AM
Dow Jones News
By Carla Mozee, MarketWatch
BOE's Carney says 'not yet the time' to hike rates, aiding U.K.
blue chips
European stocks edged higher, aided by gains for
consumer-related shares, while U.K. blue-chips got a lift from Bank
of England Governor Mark Carney's comments on interest rates.
The Stoxx Europe 600 was up 0.2% at 392.66, modestly building on
gains logged Monday that left the index at its highest since June
5. Consumer services and consumer goods shares led the advancers
Tuesday, while basic material and oil and gas shares sagged.
Aiding consumer shares was the prospect that borrowing rates in
the U.K. are set to stay at a record low for the foreseeable
future. BOE chief Carney said in his delayed Mansion House speech
in London Tuesday
(http://www.marketwatch.com/story/boe-chief-carney-too-early-to-lift-interest-rates-2017-06-20)
that "now is not yet the time" to begin to lift the bank's key
interest rate from its current 0.25%.
"It would appear that the BOE chief wants to keep monetary
policy loose as there is so much uncertainty surrounding the Brexit
negotiations, which started yesterday," said David Madden, analyst
at CMC Markets UK, in a note.
"Some traders feel that Mr. Carney was too aggressive in his
easing of monetary policy in the awake of Brexit, and now it seems
that he doesn't want to increase interest rates in case he has to
cut them again."
Read Brett Arends: Brexit threatens to become a fiasco -- and
investors are in denial
(http://www.marketwatch.com/story/brexit-threatens-to-become-a-fiasco-and-investors-are-in-denial-2017-06-19)
And check out:Forget Trump and Brexit -- this is what elite fund
managers are watching
(http://www.marketwatch.com/story/this-is-what-elite-fund-managers-are-watching-closely-and-its-not-trump-or-brexit-2017-06-19)
(http://www.marketwatch.com/story/brexit-threatens-to-become-a-fiasco-and-investors-are-in-denial-2017-06-19)
Carney's comments helped pull the U.K.'s FTSE 100 out of the red
(http://www.marketwatch.com/story/ftse-100-flips-higher-as-central-bank-boss-wants-rates-held-steady-2017-06-20)
for a rise of 0.2% to 7,541.16. At the same time, the British pound
fell below $1.27
(http://www.marketwatch.com/story/pound-slides-to-1-week-low-after-boes-carney-dashes-hopes-of-a-rate-hike-2017-06-20).
Consumer cheer: On both the FTSE 100 and the Stoxx 600, shares
of home builder Persimmon PLC (PSN.LN) gained 1.8% and rival Taylor
Wimpey PLC (TW.LN) picked up 1.3%.
Elsewhere in the consumer goods sector, shares of German
lighting manufacturer Osram Licht AG (OSR.XE) marched up 3.2%, to
top the Stoxx 600. The move came after a ratings upgrade to buy at
Bankhaus Lampe, according to Dow Jones Newswires.
Techs appeal: Meanwhile, the Stoxx Europe 600 Technology Index
tacked on 0.5%, keying off advances for the tech sector Monday on
Wall Street
(http://www.marketwatch.com/story/dow-industrials-poised-for-a-fresh-record-while-tech-stocks-shape-up-to-rebound-2017-06-19).
The upbeat tone for techs contrasts with recent pain in the sector,
as questions over valuations prompted investors to yank shares of
Apple Inc. (AAPL) and Facebook Inc. (FB) sharply lower, with the
impact spilling over into the European tech sector.
Stock movers: Barclays PLC (BCS) (BCS) was down 0.2% after the
U.K. Serious Fraud Office charged the bank and four former
executives with conspiracy to commit fraud
(http://www.marketwatch.com/story/barclays-4-former-top-execs-charged-with-fraud-2017-06-20)
in a case related to fundraising in Qatar during the financial
crisis.
Indexes: Germany's DAX 30 was up 0.30% at 12,933.25. France's
CAC 40 gained 0.4% to 5,334.14, still buoyed by the weekend's
elections, when French President Emmanuel Macron's party won a
parliamentary majority.
Economic data: The eurozone's current account surplus narrowed
to 22.2 billion euros in April
(http://www.marketwatch.com/story/eurozone-current-account-surplus-narrows-2017-06-20).
(END) Dow Jones Newswires
June 20, 2017 05:41 ET (09:41 GMT)
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