EUROPE MARKETS: European Markets Gloomy On Trump Trade War Tweets
August 12 2019 - 8:12AM
Dow Jones News
By Dave Morris
European markets declined as a resolution to the U.S.-China
trade war seemed to move further away.
How did markets perform?
The Stoxx Europe 600 edged lower as investors abandoned the
hints of optimism from Thursday and Friday's sessions.
The U.K.'s FTSE 100 index was the most negatively impacted among
top regional indexes, with unrest in Hong Kong driving major banks
sharply downward.
German's DAX was close to flat, despite falling auto maker
shares on news of slowing hybrid and fully electric auto sales in
China.
The pound rebounded slightly from a disastrous few sessions,
with traders taking stock of last week's dramatic moves lower.
What's moving the markets?
U.S. President Donald Trump continued firing Twitter salvos in
the trade dispute with China on Saturday. Trump said China badly
wanted to make a deal with the U.S., and that they may want to wait
to see if a Democrat wins the election in 2020 "so they can
continue the great ripoff of America". The tweets cast doubt over
whether talks scheduled to be held in September would take
place.
Italian Deputy Prime Minister Matteo Salvini dismissed reports
in the country's media Saturday that his party would call for
leaving the euro in a snap election campaign. Salvini's party,
which is part of the country's governing coalition, filed a
no-confidence motion Friday. It has recalled its members to Rome
with the intention of pushing for a vote on the motion this
week.
Which stocks are active?
Tullow Oil PLC (TLW.LN) shares leapt when it released a
statement Monday morning announcing the oil it had discovered in an
exploration well off Guyana had exceeded its forecast. AJ Bell
investment director Russ Mould said "It is an encouraging start to
drilling on the Orinduik block. Investors don't have too long to
wait to see if this is a one-off or if a repeat performance can be
conjured, with drilling on a second well set to get underway
imminently."
AMS AG (AMS.EB) shares fell significantly after the Austrian
semiconductor company announced it would offer to buy Osram Licht
AG (OSR.XE) for EUR38.50 per share, in an all-cash offer valuing
the company at EUR3.7 billion. Shares in the German lighting
company moved significantly higher.
NMC Health (NMC.LN) shares continued to fall despite reaffirming
its full-year earnings guidance in a statement last week, saying
business was still in line with its previous views. Shares in the
health-care provider are down more than 50% in the past 12
months.
(END) Dow Jones Newswires
August 12, 2019 07:57 ET (11:57 GMT)
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