EUROPE MARKETS: Europe Stocks Higher On China Move To Relax Tariffs; LSE Rallies On Bid
September 11 2019 - 5:31AM
Dow Jones News
By Steve Goldstein, MarketWatch
Europe stocks on Wednesday advanced as a signal of easing
tensions between the U.S. and China helped bid equities higher
ahead of a critical central bank decision.
The Stoxx Europe 600 rose 0.66% to 388.98.
Banks and insurers advanced, while more defensive names like
Veolia (VIE.FR) , the French waste and waste management company,
and Iberdrola (IBE.MC) , the Spanish utility, lost ground.
The German DAX rose 0.8% to 12366.47, the French CAC 40 rose
0.42% to 5616.65 and the U.K. FTSE 100 jumped 1.02% to 7341.94.
U.S. stock futures rose after a 73-point advance for the Dow
industrials on Tuesday.
China on Wednesday announced plans to exempt 16 categories of
products from the first round of tariffs. Talks between the U.S.
and China are scheduled to resume at a high level in October.
The European Central Bank on Thursday is meeting with
expectations of a package of easing measures to be announced.
"Although this week's ECB meeting is shaping up as one of the
most unpredictable in recent years, what's in question is not
whether policy will be eased but the precise combination of
measures which will find support to get through the Governing
Council," said Marchel Alexandrovich of Jefferies. "The bar for
further ECB easing has been lowered substantially in recent months
and it would be a case of severe miscommunication if at this point,
even in the face of small downward forecasts changes, the ECB
failed to amend policy."
Of companies in the spotlight, the London Stock Exchange
(LSE.LN) shot up 9% to 7448 pence after the Hong Kong Exchanges
& Clearing (0388.HK) launched a surprise GBP29.6 billion, or
8,361 pence a share bid. The Hong Kong exchange already owns The
London Metal Exchange.
The LSE didn't have an immediate comment on the bid.
Inditex (ITX.MC) fell 2% as the Zara and Massimo Dutti owner
reported a weaker-than-forecast profit
(http://www.marketwatch.com/story/zara-owner-inditex-posts-higher-net-profit-sees-single-digit-sales-growth-ahead-2019-09-11)
alongside first-half same-store sales of 5% and a forecast of
full-year same-store sales between 4% and 6%.
"The main issue will be the focus on why gross margin has been
weaker with no large FX moves and a strong like-for-like sales and
why there is not more leverage on a solid LFL performance. This may
again bring into question whether Inditex can grow both LFL and
gross margin at the same time," said analysts at Citi.
(END) Dow Jones Newswires
September 11, 2019 05:16 ET (09:16 GMT)
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