LONDON MARKETS: London Markets Flat As Investors Look To Central Banks
June 17 2019 - 8:05AM
Dow Jones News
By Dave Morris
European markets were unusually calm Monday as investors
contemplated whether central banks would save them from the impacts
of the continuing U.S.-China trade battle.
How did markets perform?
The Stoxx 600 was flat at 378.9, after declining 0.4%
Friday.
The U.K.'s FTSE 100 was also flat at 7,345.6. On Friday it moved
down 0.3%.
The pound was likewise flat at $1.2592. It sank Friday by
0.6%.
In Germany, the DAX ticked up 0.1% to 12,107.7 It slid 0.6%
Friday.
France's CAC 40 reached 5,377.3, an increase of 0.2% after
decreasing 0.1% Friday.
Italy's FTSE MIB rose 0.2% to 20,661.1. On Friday it nudged 0.1%
lower.
What's moving the markets?
U.S. Commerce Secretary Wilbur Ross played down the prospect of
a China-U.S. trade deal
(http://www.marketwatch.com/story/wilbur-ross-lowers-expectations-of-trade-deal-coming-from-g-20-talks-between-trump-xi-2019-06-16)emerging
from the G-20 summit in Japan if U.S. President Donald Trump and
Chinese President Xi Jinping ultimately do hold talks. Ross said
the "most that might come" is new ground rules for the negotiations
or possibly a schedule of future discussions.
Investors will be watching and positioning themselves ahead of a
busy week for central bank meetings, as some fear trade tensions
are nudging the global economy toward recession. Others, however,
are skeptical that the U.S. Federal Reserve will cut its policy
rate Wednesday
(http://www.marketwatch.com/story/the-fed-may-break-a-lot-of-stock-market-investors-hearts-next-week-2019-06-15),
as unemployment is at record lows and inflation is running close to
the Fed's target.
The Bank of England is also set to hold a meeting, but
economists are expecting it to keep its base rate at 0.75% amid
Brexit uncertainty. The Bank has been on a path of tightening
monetary conditions, but poor economic data including GDP figures
showing the economy contracted by 0.4% in April have led to
predictions that the Bank will hold steady.
Which stocks are active?
Negative news from Deutsche Lufthansa AG (LHA.XE) affected U.K.
airlines. Shares plunged 11.4% as it slashed its projections for
2019, citing overcapacity and stiff competition in the air travel
market
(http://www.marketwatch.com/story/lufthansa-cuts-2019-view-hurt-by-cheaper-airlines-2019-06-17).
As a result, EasyJet PLC (EZJ.LN) sank 5.2% while Ryanair Holdings
PLC (RY4C.DB) declined 4.2%.
Royal Mail PLC (RMG.LN) ticked upward by 2.4% after Bernstein
analysts upgraded its shares to outperform and highlighted the
strength of its European parcels business, GLS. Shares over the
past 52 weeks have cratered 59.2%.
(END) Dow Jones Newswires
June 17, 2019 07:50 ET (11:50 GMT)
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