EUROPE MARKETS: Fiat, Maersk Shares Shine In Lackluster European Stock Market
August 21 2017 - 5:32AM
Dow Jones News
By Carla Mozee, MarketWatch
Renewed U.S.-North Korea tensions, upcoming Jackson Hole meeting
on investors' minds
European stocks pulled back Monday on renewed U.S.-North Korea
tensions, but deal news helped lift shares of Danish shipping
company Maersk A/S and car maker Fiat Chrysler Automobiles NV.
The Stoxx Europe 600 index fell 0.4% to 372.85, with only the
consumer-goods group moving higher. On Friday, the pan-European
benchmark lost 0.7%
(http://www.marketwatch.com/story/spanish-stocks-lead-european-selloff-after-deadly-terrorists-attack-in-barcelona-2017-08-18)
in the wake of terrorist attacks in Spain.
Regional stocks were headed for a third consecutive loss as the
U.S. and South Korea kicked off annual military exercises
(http://www.marketwatch.com/story/tensions-expected-to-rise-as-us-south-korea-start-annual-war-games-2017-08-20),
bringing tensions between the U.S. and North Korea back into focus.
Pyongyang warned on Sunday that the maneuvers are "reckless
behavior, driving the situation into the uncontrollable phase of a
nuclear war."
The "start of military exercises between America and South Korea
could spark a return to the kind of market-dragging nuclear
rhetoric seen a few weeks ago," wrote Spreadex financial analyst
Connor Campbell.
Stock movers: But investors did have corporate developments to
consider Monday. Maersk (MAERSK-B.KO) jumped 4.1% after the
shipping heavyweight reached a deal to sell its oil and gas
business for $7.45 billion to French oil producer Total SA
(http://www.marketwatch.com/story/total-buys-maersk-oil-unit-in-745-billion-deal-2017-08-21)(TOT)
. Total shares were off 0.6%.
Fiat shares (FCA.MI) climbed 3.3% after Reuters reported
(https://www.reuters.com/article/us-fiat-chrysler-m-a-great-wall-idUSKCN1B10HU)
that China's Great Wall Motor Co. (2333.HK) had expressed interest
in buying the Italian-American car maker. An earlier report by
Automotive News
(http://www.autonews.com/article/20170821/GLOBAL03/170829942/china-great-wall-jeep)
said Great Wall Motor was interested in Fiat's Jeep brand.
National indexes: In Madrid, the IBEX 35 was down 0.2% at
10,361.70. France's CAC 40 index fell 0.7% to 5,080.55, and
Germany's DAX 30 index lost 0.5% to 12,098.74.
The U.K.'s FTSE 100 index dropped 0.3% to 7,300.92.
Central banks in focus: Investors are already looking ahead to
the U.S. Federal Reserve's central bank symposium in Jackson Hole,
Wyo., which starts Thursday.
"Many leaders, including the Federal Reserve Chair Janet Yellen
and the European Central Bank President Mario Draghi will speak
about growth, inflation and changes in trade relations due to Trump
policies. Yet, no significant policy messages are expected," said
LCG's senior market analyst Ipek Ozkardeskaya.
ECB chief Draghi will be watched for any signal that the bank
has developed a scenario for winding down monetary easing. On
Monday, the euro bought $1.1743, up from $1.1762 late Friday in New
York.
Read:Euro slides after ECB hints at no hawkish shift at Jackson
Hole
(http://www.marketwatch.com/story/euro-slides-after-ecb-hints-at-no-hawkish-shift-at-jackson-hole-2017-08-16)
(END) Dow Jones Newswires
August 21, 2017 05:17 ET (09:17 GMT)
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