EUROPE MARKETS: European Stocks Bounce Back After Biggest Weekly Drop In A Year
February 12 2018 - 4:26AM
Dow Jones News
By Victor Reklaitis, MarketWatch
Analyst: Rebound is 'a welcome respite after two weeks of sharp
falls'
European stocks stepped higher Monday, erasing part of their
sizable monthly loss.
Analysts attributed the upbeat action in part to an encouraging
finish on Friday for U.S. equities, but noted global markets remain
down in a big way so far in February.
What are markets doing?
The Stoxx Europe 600 index climbed 1.6% to 374.56.
On Friday, the pan-European benchmark fell 1.5% and suffered its
lowest close since August. It also notched a weekly drop of 5%, its
biggest percentage fall since January 2016.
In early action Monday, Germany's DAX 30 index put on 2% to
12,348.75, while France's CAC 40 gained 1.5% to 5,157.58. The
U.K.'s FTSE 100 index rose 1.3% to 7,185.82.
Read:50-year Wall Street veteran says this sure feels like a
stock-market bottom
(http://www.marketwatch.com/story/50-year-wall-street-veteran-this-sure-feels-like-a-stock-market-bottom-2018-02-06)
And see:Here's how U.S. stocks typically perform in the
aftermath of a major rout
(http://www.marketwatch.com/story/heres-how-the-stock-market-typically-performs-in-the-aftermath-of-a-major-rout-2018-02-06)
The euro rose to $1.2272 from $1.2252 late Friday in New
York.
Meanwhile, U.S. stock futures were rising Monday
(http://www.marketwatch.com/story/us-stock-futures-climb-point-to-rebound-for-monday-2018-02-12),
adding to advances seen at the end of last week.
What are strategists saying?
"European markets look set to start the new week firmly on the
front foot, a welcome respite after two weeks of sharp falls,
helped by the strong rebound in U.S. markets on Friday that saw the
Dow and S&P 500 both rebound off their weekly lows," said
Michael Hewson, chief market analyst at CMC Markets UK, in a
note.
"Even though U.S. markets enjoyed a positive day on Friday, the
late rebound can't disguise the fact that U.S., as well as global
equities, have undergone their worst [two weeks] this decade," he
added.
What is driving the market?
European stocks have slumped this month as part of a wider
global market rout. Strategists have pinned the drop in part on the
need for a healthy correction after a runup, as well as on rising
bond yields amid signs of inflation, with the higher yields luring
money out of equities.
See:The Dow's down 10%? It's time for some buying, says longtime
bear Doug Kass
(http://www.marketwatch.com/story/the-dows-down-10-its-time-for-some-buying-says-longtime-bear-doug-kass-2018-02-09)
Also read:A U.K. rate rise in May? Analysts digest hawkish
surprise from BOE
(http://www.marketwatch.com/story/a-uk-rate-rise-in-may-analysts-digest-hawkish-surprise-from-boe-2018-02-08)
The Stoxx Europe 600 is down 5.3% so far in February, cutting
its gain over the past 12 months to 2%.
(END) Dow Jones Newswires
February 12, 2018 04:11 ET (09:11 GMT)
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