EUROPE MARKETS: European Stocks Finish Higher As German Businesses Take 'euphoric' Tone
July 25 2017 - 12:22PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
TechnipFMC slides on restatement plan
European stocks closed higher Tuesday, with bank stocks gaining
ground as investors assessed upbeat developments from Germany and
Greece.
The Stoxx Europe 600 tacked on 0.4% to finish at 380.77,
rebounding after the benchmark on Monday closed lower by 0.2%.
In Frankfurt, the DAX 30 was higher by 0.5% at 12,264.31,
holding to gains after the closely watched Ifo Institute described
German companies as "euphoric"
(http://www.marketwatch.com/story/german-business-sentiment-hits-record-high-in-july-2017-07-25).
The widely watched Ifo index of business sentiment in Europe's
largest economy surged to a record high of 116.0 in July.
"The current acceleration in the German economy is not only the
result of strong private and public consumption, but also of an
unexpected industrial revival and stronger investment," said
Carsten Brzeski, chief economist at ING, in a note.
"The recent strengthening of the euro should not be a risk, as
the German export sector has frequently proven its ability in the
past to stomach stronger exchange rates," he added.
The euro climbed to an intraday high of $1.1712, up from $1.1645
late Monday in New York. It recently traded at $1.1654.
Stock movers: Tuesday's top gainers included Banco de Sabadell
SA (SAB.MC) , as shares of the Spanish lender rose 3.7%.Sabadell is
part of a joint venture with Zurich Insurance Group (ZURN.EB) that
signed a reinsurance agreement with Swiss Re (SSREY) for its
individual life portfolio for 683.7 million euros ($797.1
million).
Sabadell's share-price rise helped lift the Stoxx Europe 600
Bank Index up 1.6%.
Randstand Holding NV (RAND.AE) leapt 4.9% as the Dutch
recruitment company's second-quarter revenue climbed nearly 15%
(http://www.marketwatch.com/story/randstad-revenue-rises-on-european-boost-2017-07-25).
TechnipFMC PLC (FTI.FR) fell 1.8% after the oil-field services
company said it would restate some prior results because of
material errors.
Provident Financial PLC (PFG.LN) dropped 5.8% after the credit
provider reported a 46% drop in first-half pretax profit
(http://www.marketwatch.com/story/provident-financial-profit-drops-46-2017-07-25).
Off the Stoxx Europe 600, shares of luxury shoe maker Jimmy Choo
(CHOO.LN) jumped 17% after it signed a $1.2 billion deal to be
acquired by U.S. fashion house Michael Kors Holdings Ltd. (KORS)
.
Greek bond sale: Meanwhile, Greece is back in the international
bond markets
(http://www.marketwatch.com/story/greece-returns-to-international-bond-markets-after-3-year-hiatus-2017-07-25)
following a three-year hiatus, with a five-year bond sale starting
Tuesday. Greece's Athex Composite was down 0.7% at 843.05 on
Tuesday, but has jumped 31% this year.
Economic docket: In the U.S., the Federal Reserve's two-day
policy meeting is due to kick off Tuesday, with the resulting
policy announcement due Wednesday. European investors closely watch
U.S. central bank moves, as they help drive sentiment in
Europe.
See:Fed to stick to plans for rate hike, balance-sheet selloff
this year
(http://www.marketwatch.com/story/no-retreat-fed-to-stick-to-plans-for-rate-hike-balance-sheet-selloff-this-year-2017-07-24)
National indexes: The U.K.'s FTSE 100 drove up 0.8% to end at
7,434.82, and France's CAC 40 index rose 0.7% to finish at
5,161.08.
(END) Dow Jones Newswires
July 25, 2017 12:07 ET (16:07 GMT)
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