EUROPE MARKETS: European Stocks Slammed By Economic Concerns
October 02 2019 - 5:54AM
Dow Jones News
By Steve Goldstein, MarketWatch
German institutes lower economic growth forecast
European stocks on Wednesday were engulfed in red on concerns
over the state of the U.S. economy, the world's largest.
Now back in negative territory over the last 52 weeks, the Stoxx
Europe 600 tumbled 1.22% to 383.27.
The German DAX slumped 1.06% to 12134.38, the French CAC 40
slumped 1.45% to 5516.46 and the U.K. FTSE 100 dropped 1.48% to
7251.33.
U.S. stock futures were weaker after the 343-point downturn for
the Dow industrials on Tuesday, when the Institute for Supply
Management reported a downturn in its closely watched U.S.
manufacturing index to the worst level in more than a decade
(http://www.marketwatch.com/story/slumping-us-manufacturers-experience-worse-month-since-end-of-great-recession-ism-finds-2019-10-01).
Germany's leading economics research institutes jointly lowered
their economic forecasts, now seeing 0.5% growth in Europe's
leading economy instead of a previous forecast for 0.8% growth.
They also cut their view for growth next year to 1.1% from 1.8%.
The DIW, Ifo Institute, IfW, IWH and RWI cited falling world-wide
demand for capital goods as well as political uncertainty and
structural changes in the automotive industry for the
downgrade.
"The global manufacturing recession is global, in that it
includes the U.S. Some of it comes from China, and some of it comes
the White House but it's pretty global and while Germany is
suffering worse than anyone else, even the U.S. is feeling it,"
said Kit Juckes, global fixed income strategist at Société
Générale.
Among the few risers was Grenke (GLJ.XE), up 6% as the financing
firm raised its full-year new-business forecast and reported
increasing margins.
Flutter Entertainment shot up 18% as the bookmaker announced it
will buy Canada's The Stars Group (TSGI.T) in a stock swap in which
it will control nearly 55% of the combined company. Flutter said
the deal will lift underlying earnings per share by at least 50% in
the first full year following completion, and its combined revenue
of GBP3.8 billion will make it the largest online betting and
gaming operator.
Tesco (TSCO.LN) rose 1% after the supermarket group announced a
first-half rise in pretax profit and the departure of its chief
executive. Read more on Tesco
(http://www.marketwatch.com/story/tesco-reports-profit-rise-and-exit-of-ceo-dave-lewis-2019-10-02).
(http://www.marketwatch.com/story/tesco-reports-profit-rise-and-exit-of-ceo-dave-lewis-2019-10-02)Shares
of Metso (METSO.HE) slumped 6%, the worst performer in the Stoxx
Europe 600, as Credit Suisse downgraded the Finnish machinery
company to underperform from neutral.
(END) Dow Jones Newswires
October 02, 2019 05:39 ET (09:39 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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