EUROPE MARKETS: European Stocks Rise As Eurozone Economic Activity Hovers At 6-year High
May 23 2017 - 6:12AM
Dow Jones News
By Carla Mozee, MarketWatch
Nokia settles disputes with Apple
European stocks rose Tuesday, with French shares among biggest
advancers as eurozone economic activity remained at a six-year
high.
The Stoxx Europe 600 was up 0.2% at 391.85, led by technology
and financial shares, according to FactSet data. But losses for
health care, oil and consumer-related shares weighed.
Travel-related shares edged lower following a suspected terror
attack by a suicide bomber in Manchester, England, that 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 at the Manchester Arena on
Monday night.
"We are working closely with the national counter terrorism
policing network and U.K. intelligence partners," Greater
Manchester Police said in a statement.
On the Stoxx 600, shares of amusement parks operator Merlin
Entertainments PLC (MERL.LN) fell 0.9% and InterContinental Hotels
Group PLC (IHG) slipped 0.1%. But British Airways parent
International Consolidated Airlines Group SA (IAG.LN) was up 0.5%
and French hotel chain operator Accor SA (AC.FR) was up 0.7%.
Political campaigning ahead of the U.K.'s general election on
June 8 was suspended Tuesday. In London, the U.K.'s FTSE 100 was up
0.1% at 7,504.22
(http://www.marketwatch.com/story/cautious-start-to-trade-in-uk-stocks-after-suspected-terror-attack-in-manchester-2017-05-23),
and the more domestically focused FTSE 250 was up 0.3%.
Eurozone growth: In Paris, the CAC 40 rose 0.7% to 5,360.52,
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.
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% at 12,655.29, and has
recently hit high all-time highs.
The euro traded at $1.1260, up from $1.1238 late Monday in New
York.
In Spain, the IBEX 35 jumped 1% and Italy's FTSE MIB rose
0.6%.
Stock movers: Nokia (NOK) (NOK) climbed 6.5% after it and Apple
Inc. (AAPL) settled long-running intellectual property disputes and
agreed to a multi-year 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
up-front cash payment from Apple along with additional revenue
during the term of the agreement.
Severn Trent PLC shares (SVT.LN) rose 1.5% after the British
water company's 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 05:57 ET (09:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024