EUROPE MARKETS: European Stocks Finish Sharply Lower; British American Tobacco PLC's Stock Sinks 12%
November 12 2018 - 05:34PM
Dow Jones News
By Mark DeCambre, MarketWatch
Apple supplier ams AG sees its shares tumble 23%
European stocks ended sharply lower Monday as investors wrestled
with the latest developments tied to Italy's contentious budget
plan and Britain's negotiation's to strike a trade pact, as that
country's leaders plot to leave the European Union. A tumble in
shares of British American Tobacco PLC also weighed on European
bourses.
What are markets doing?
The Stoxx Europe 600 fell 1% to close at 362.03, after the index
put in a weekly gain of 0.5%.
Germany's DAX 30 ended the day 1.8% lower at 11,325.44, while
France's CAC 40 dropped 0.5% to close at 5,106.75. The U.K.'s FTSE
100 finished 0.7% lower at 7,053.08.
Italy's FTSE MIB Italy index closed 1.1% lower at 19,055.92.
The euro weakened below the level of $1.13 in response and
dropped to its lowest since late June 2017.
Meanwhile, in the U.K., the British pound was off to a weak
start at the beginning of the week, as Brexit negotiations weighed.
One pound last bought $1.2850, down from $1.2974.
What is driving the market?
Global equities opened the week lower as investors watched
closely for the next tactical moves between Italy and the European
Union. Rome's first budget proposal for 2019, including a
ballooning deficit, was rejected last month and U.K. Prime Minister
Theresa May continues to forge a new agreement with EU for its life
outside of the trade bloc. U.K. Transport Minister Jo Johnson
resigned over the lack of progress in Brexit talks, calling for the
public to have another say. May also has been battling doubts about
her Brexit leadership.
Stock movers
British American Tobacco PLC(BATS.LN) finished the session down
12% after The Wall Street Journal reported
(http://www.marketwatch.com/story/altria-british-american-tobacco-stocks-fall-again-on-report-of-menthols-ban-analyst-says-buy-the-dip-2018-11-12)
that the Food and Drug Administration was planning to propose a ban
on menthol cigarettes.
Flughafen Zuerich AG(FHZN.EB) shares fell 15.7% after the
airport operator warned that changes
(http://www.cityam.com/268969/shares-zurich-airport-operator-plunge-after-warning)
proposed by the Federal Office of Civil Aviation could reduce
revenues by 25%.
Shares of ams AG(AMS.EB), a supplier to Apple Inc. (AAPL),
closed down 23%, amid growing worries about the forecast for iPhone
demand. Apple's shares declined by 5.1% after Lumentum Holdings
Inc.'s stock (LITE)plummeted 32% to its lowest close since February
(http://www.marketwatch.com/story/apple-stock-sinks-as-concerns-over-slowing-iphone-demand-take-hold-2018-11-12)
2017 after the company said before Monday's open that it "recently
received a request from one of our largest industrial and consumer
customers for laser diodes for 3-D sensing to materially reduce
shipments" during its fiscal second quarter, which ends December.
An oblique reference to Apple, market participants said.
(END) Dow Jones Newswires
November 12, 2018 17:19 ET (22:19 GMT)
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