EUROPE MARKETS: European Stocks Hunt For Firm Direction As Earnings Reports Pile Up
February 23 2017 - 5:25AM
Dow Jones News
By Carla Mozee, MarketWatch
European stocks ping-ponged between small gains and losses
Thursday, as investors sifted through earnings reports and assessed
the mixed tone on U.S. interest rates from the Federal Reserve.
The Stoxx Europe 600 was up less than 1 point at 373.51. Utility
and consumer-related shares fell, but the telecoms and oil and gas
sectors advanced. The pan-European benchmark on Wednesday finished
unchanged at 373.38, but held near its best levels since late
2015.
See:5 reasons to invest in European stocks now
(http://www.marketwatch.com/story/5-reasons-to-invest-in-european-stocks-now-2017-02-23)
In the currency market, the euro fetched $1.0557, not far from
the $1.0561 it traded at late Wednesday in New York in the wake of
the Fed minutes.
"Many" Fed members supported raising interest rates
(http://www.marketwatch.com/story/fed-minutes-show-support-for-rate-hike-fairly-soon-2017-02-22)
in the world's largest economy "fairly soon", but were cautious as
they await details about stimulus measures wanted by U.S. President
Donald Trump and the Republican Congress.
"It is the lack of commitment to a hiking timeline and overall
ambiguity that continues to leave investors empty-handed," said
Lukman Otunuga, FXTM research analyst, in a note.
He said a March rate hike looks unlikely. But "a scenario where
U.S. economic data repeatedly exceeds expectations ... could prompt
the central bank to surprise markets by taking action in May."
While the Fed is on the path of raising rates, the European
Central Bank has left rates at ultralow levels and is buying 60
billion euros ($63 billion) a month of government bonds throughout
the eurozone.
Movers: Telefonica SA (TEF) (TEF) gained 2.5%. The Spanish
telecom company swung to a fourth-quarter profit of EUR145 million
(http://www.marketwatch.com/story/telefonica-returns-to-profit-2017-02-23)
after booking major restructuring costs a year earlier.
Barclays PLC shares (BCS) were pushed up 3% as the London-based
bank swung to a full-year net profit of 1.6 billion pounds
(http://www.marketwatch.com/story/barclays-swings-to-profit-as-overhaul-nears-end-2017-02-23)
($1.99 billion) and said it's now just months away from finishing
its restructuring.
Veolia Environnement SA (VIE.FR) dropped 5.4%. The company
expects 2017 adjusted net profit to remain roughly stable
(http://www.marketwatch.com/story/veolia-profit-rises-as-restructuring-bears-fruit-2017-02-23)
as low inflation hinders revenue growth and as some local
authorities in Europe retake the handling of water and waste
management from private companies. Adjusted net income in 2016 was
above expectations.
Peugeot SA (UG.FR) said it's planning to pay its first dividend
since 2010
(http://www.marketwatch.com/story/peugeot-brings-back-dividend-as-profit-jumps-79-2017-02-23).
Net profit surged 79% for 2016, while revenue fell 1.2% to EUR54.03
billion. Shares of the French car maker fell 2.5%.
Indexes: France's CAC 40 rose 0.3% to 4,908.67, and Germany's
DAX 30 picked up 0.1% at 12.011.72.
The U.K.'s FTSE 100 was fractionally higher at 7,303.10. Spain's
IBEX 35 moved up 0.5% to 9,521.70.
Data: Germany's economy grew at fourth-quarter rate of 0.4%, or
1.7% in annualized terms
(http://www.marketwatch.com/story/german-gdp-up-17-on-year-as-budget-surplus-grows-2017-02-23),
said statistics agency Destatis, confirming its earlier
estimates.
(END) Dow Jones Newswires
February 23, 2017 05:10 ET (10:10 GMT)
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