EUROPE MARKETS: Italy Stocks Stand Out In Europe, Where ECB Grabs The Spotlight
December 13 2018 - 2:31PM
Dow Jones News
By Emily Horton
GAM slumps in Switzerland after scrapping dividend
Europe markets ended mostly lower on Thursday, as investors
turned their attention to a European Central Bank meeting and
Brexit issues, with optimism over global trade taking a back
seat.
How are markets trading?
The Stoxx Europe 600 gave up 0.2% to end at 349.42, after
closing up 1.7% on Wednesday.
Germany's DAX 30 edged less than 0.1% lower to 10,924.70, while
France's CAC shed 0.3% to 4,896.92. The U.K.'s FTSE 100 declined
less than 0.1% to 6,877.50, after finishing up 1% on Wednesday.
The day's best performer was Spain's IBEX 35 index , which rose
0.8%, while Italy's FTSE MIB Italy index ended 0.5% higher at
19,048.83.
What is driving the markets?
The European Central Bank left key rates unchanged
(http://www.marketwatch.com/story/ecb-affirms-plan-to-stop-bond-buys-at-end-of-month-rates-unchanged-2018-12-13),
and said it expects policy to stay at current levels through summer
2019. The bank also affirmed plans to end monthly asset purchases
at the end of the month, while continuing to fully reinvest the
proceeds from maturing securities held on its balance sheet for a
period well beyond when it begins to raise interest rates. In a
news conference, ECB President Mario Draghi said risks to the
eurozone's economic outlook remained "broadly balanced" but were
moving to the downside.
Read:Here's how ECB's Mario Draghi walked the tightrope between
caution and confidence
(http://www.marketwatch.com/story/heres-how-ecbs-mario-draghi-walked-the-tightrope-between-caution-and-confidence-2018-12-13)
British Prime Minister Theresa May survived her leadership
challenge
(http://www.marketwatch.com/story/uk-prime-minister-theresa-may-survives-confidence-vote-amid-brexit-chaos-2018-12-12),
late on Wednesday evening, successfully suppressing a damaging
rebellion within her party, but leaving her in a politically
weakened state with further questions over Brexit added.
Positive trade talks between the U.S. and China boosted Wall
Street trading on Wednesday. U.S. stocks saw gains
(http://www.marketwatch.com/story/us-stock-futures-point-to-mixed-open-as-trade-concerns-loom-2018-12-13)
early Thursday but then turned modestly lower.
Italian stock and bonds rose after the government has agreed to
trim its budget deficit forecast for next year, which reduces the
risk of a clash with the EU. "But this does not spell the end of
its fiscal troubles. With the country's economic prospects bleak,
government debt still looks unsustainable in the long run," said
analysts at Capital Economics, in a note.
What stocks are active?
Among the big gainers, German travel giant TUI AG (TUI1.XE) rose
4.3% after the company posted a rise in net profit.
(http://www.marketwatch.com/story/tui-net-profit-up-14-upbeat-on-winter-period-2018-12-13)
(http://www.marketwatch.com/story/tui-net-profit-up-14-upbeat-on-winter-period-2018-12-13)UniCredit
SpA (UCG.MI) rose 1.2%, while Banco Santander SA (SAN.MC) (SAN)
gained 1.5%.
Security services company G4S PLC (GFS.LN) announced it is
considering separating out its Cash Solutions businesses
(http://www.marketwatch.com/story/g4s-plc-may-separate-out-g4s-cash-solutions-2018-12-13),
leading to a 6.8% rise.
One of the biggest losers in Europe was the German retailer
METRO AG (B4B.XE), which lost 11% after it reported a s
(http://www.marketwatch.com/story/metro-earnings-up-but-sales-pull-back-2018-12-13)light
drop in overall sales
(http://www.marketwatch.com/story/metro-earnings-up-but-sales-pull-back-2018-12-13).
(http://www.marketwatch.com/story/metro-earnings-up-but-sales-pull-back-2018-12-13)
(http://www.marketwatch.com/story/metro-earnings-up-but-sales-pull-back-2018-12-13)Away
from the Stoxx Europe 600, Swiss-based GAM Holding AG (GAM.EB)
slumped 22% after the asset manager announced a restructuring
program and suspended its 2018 dividend
(https://www.nasdaq.com/press-release/gam-holding-ag-provides-an-estimate-on-its-2018-results-and-announces-a-comprehensive-restructurin-20181213-00017).
In oil stocks Tullow Oil PLC (TLW.LN) fell by just under 3% and
heavyweight BP PLC (BP.LN) declined 0.4%.
-- Barbara Kollmeyer contributed to this report
(END) Dow Jones Newswires
December 13, 2018 14:16 ET (19:16 GMT)
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