EUROPE MARKETS: European Stocks Rise, With DAX Up 1% As Auto Shares Climb, Euro Eases
January 16 2018 - 8:31AM
Dow Jones News
By Carla Mozee, MarketWatch
Hugo Boss sales impress
European stocks gained ground Tuesday, putting the regional
benchmark within striking distance of a new 2018 high.
A slide in the euro gave a lift to exporter shares. Gains for
auto makers and German fashion house Hugo Boss AG also helped drive
the Stoxx Europe 600 index higher.
How markets are moving?
The Stoxx Europe 600 index rose 0.3% to 398.93, led by tech and
utility shares. The oil and gas, basic materials and health care
sectors were the only ones losing ground.
The pan-European benchmark was not far from its 2018 closing
high of 400.11, logged on Jan. 9. On Monday, the benchmark fell
0.2%,
(fell%200.2%%20to%20end%20at%20397.83,%20erasing%20part%20of%20last%20week%e2%80%99s%20rise%20rise%20of%200.3%.)
hurt by the euro's climb to three-year highs.
Germany's DAX 30 index on Tuesday leapt 1% to 13,335.30 and
France's CAC 40 was up 0.2% at 5,522.29.
The U.K.'s FTSE 100 index turned lower, down 0.1% at 7,762.25,
but not far off from its record closing high logged last week
(http://www.marketwatch.com/story/ftse-100-scrabbles-to-hold-onto-record-as-bp-falls-2018-01-16).
The euro bought $1.2224, down from $1.2264 late Monday in New
York.
What's driving markets?
Stocks were finding some relief in the euro's pullback, which
can make European exports cheaper and so more attractive for
overseas buyers.
The shared currency edged back from Monday's gain of 0.5%
against the U.S. dollar, its fourth session rise in a row. It
advanced 2.7% over those sessions, according to WSJ Market Data
Group. The euro has scaled higher in recent sessions after minutes
from the European Central Bank's meeting in December suggested
there may be a hawkish shift in tone toward monetary policy.
According to media reports
(https://www.reuters.com/article/uk-ecb-policy-hansson/ecb-could-end-bond-buys-in-one-go-after-sept-hansson-idUSKBN1F4256)
late Monday, Ardo Hansson, a member of the European Central Bank's
Governing Council, said the central bank could call a complete halt
to its bond buying after September. Speaking in an interview with
German newspaper Boersen-Zeitung, Hansson said if economic growth
and inflation remain in line with projections, it would be
"conceivable and also appropriate" to end the program.
European equities were also seen as tracking U.S. stock markets
higher. Futures for the Dow Jones Industrial Average jumped more
than 200 points, indicating a fresh record above 26,000 at the open
(http://www.marketwatch.com/story/dow-on-track-for-200-point-jump-putting-26000-within-reach-2018-01-16),
when traders return from Monday's Martin Luther King, Jr.
holiday.
Which stocks are active?
Hugo Boss AG shares (BOSS.XE) climbed 2.3% after the German
apparel and accessories maker posted a 5% rise in preliminary
fourth-quarter sales
(http://www.marketwatch.com/story/hugo-boss-revenue-up-sees-earnings-on-track-2018-01-16)
to EUR735 million ($900 million), bolstered in part by double-digit
growth in the U.S.
Peugeot SA (UG.FR) tacked on 1.5% after the French auto maker
said it expects a 15% rise in global sales for 2017.
Continental AG (CON.XE) rose 1.9% after Reuters reported the
German auto components makers has hired J.P. Morgan to advise about
a possible breakup of the company
(https://www.reuters.com/article/us-continental-restructuring/germanys-continental-hires-jp-morgan-for-potential-break-up-sources-idUSKBN1F500U).
The report cited sources familiar with the matter.
Shares of German auto makers helped lift the DAX 30, with
Volkswagen AG (VOW.XE) and Daimler AG (DAI.XE) rising 2.2% and
1.2%, respectively.
BP PLC (BP.LN) (BP.LN) fell 2% after the oil producer said it
expects to book a $1.7 billion charge
(http://www.marketwatch.com/story/bp-to-book-17-billion-deepwater-horizon-charge-2018-01-16-34853027)
in its 2017 fourth-quarter results for claims related to the 2010
Deepwater Horizon oil spill.
Shares of plastic packaging supplier RPC Group PLC (RPC.LN) and
car dealer Inchcape PLC (INCH.LN) dropped 1.4% and 2.6%,
respectively, following ratings downgrades to hold from buy at
Berenberg.
Associated British Foods (ABF.LN) picked up 1.9% following a
ratings upgrade to overweight from equal weight at Barclays.
(END) Dow Jones Newswires
January 16, 2018 08:16 ET (13:16 GMT)
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