EUROPE MARKETS: European Stocks Slip In Thin Volumes With U.K., U.S. Markets Closed
May 29 2017 - 11:59AM
Dow Jones News
By Sara Sjolin, MarketWatch
Italian stocks slide on speculation of September election
European stocks kicked off the week in slightly negative
territory on Monday, with market holidays in the U.S. and U.K.
denting trading volumes.
The Stoxx Europe 600 index fell 0.03% to close at 391.25,
marking a third straight day of losses.
The index fell on Thursday and Friday, with oil and gas shares
leading the charge lower after disappointment over OPEC's decision
to extend its production accord, but not deepen the cuts. Crude oil
tumbled 4.8% after the call on Thursday, but rose on Friday and
continued to recover on Monday. The July contract was up 0.1% at
$49.85 a barrel.
Indexes: France's CAC 40 index lost 0.1% to 5,332.47, while
Germany's DAX 30 index ended 0.2% higher at 12,628.95.
The U.K.'s FTSE 100 index was closed for trading due to the
spring bank holiday. U.S. stock markets were also closed for
Memorial Day.
Italy's FTSE MIB Index slid 2% after weekend reports that an
election could take place as early as September
(https://www.euractiv.com/section/future-eu/news/renzi-suggests-next-election-be-synchronised-with-germanys/).
Read: When do markets close for Memorial Day?
(http://www.marketwatch.com/story/when-do-markets-close-for-memorial-day-2017-05-24)
Stock movers: Shares of Intesa Sanpaolo SpA (ISP.MI) lost 2.1%
as the Financial Times reported that the Italian bank is set to
close branches and cut costs in a strategy shift
(https://www.ft.com/content/2b30af56-4237-11e7-9d56-25f963e998b2).
Shares of other Italian banks were also lower, with UniCredit SpA
(UCG.MI) off 4.3% and Unione di Banche Italiane SpA (UBI.MI) down
4.7%.
Shares of Lanxess AG (LXS.XE) rallied 7.9% after reports Warren
Buffett has bought shares in the chemicals group.
In the U.K., British Airways said it had resumed almost all
flights after a major IT outage over the weekend
(http://www.marketwatch.com/story/british-airways-travelers-suffer-delays-cancellations-owing-to-computer-glitch-2017-05-27)
left all their flights leaving from Heathrow and Gatwick airports
grounded.
There was no trading in shares of BA-owner International
Consolidated Airlines Group (IAG.LN) (IAG.LN) in London due to the
U.K. holiday. However, the company's Spanish-listed shares (IAG.LN)
fell 2.8%.
Analysts at Citigroup said the outage is expected to cost IAG
around 100 million euros ($111 million), comprised of EUR40 million
in lost revenue and EUR60 million in customer compensation.
Read:The bill for British Airways's IT carnage? $111 million,
Citi estimates
(http://www.marketwatch.com/story/the-bill-for-british-airwayss-it-carnage-111-million-citi-estimates-2017-05-29)
Draghi testimony: European Central Bank President Mario Draghi
said the eurozone economy still needs a "fairly substantial amount"
of monetary stimulus
(http://www.marketwatch.com/story/draghi-eurozone-still-needs-substantial-ecb-help-2017-05-29)
from the ECB to help boost inflation in a sustainable way.
Testifying at the European Parliament in Brussels, Draghi
acknowledged the economic recovery in the currency union, but
warned that underlying inflation is still too weak.
The euro headed south after the comments to buy $1.1171,
compared with $1.1182 late Friday in New York.
(END) Dow Jones Newswires
May 29, 2017 11:44 ET (15:44 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Aug 2024 to Sep 2024
FTSE 100
Index Chart
From Sep 2023 to Sep 2024