EUROPE MARKETS: European Stocks Set To Snap Losing Streak As Miners Jump
August 22 2017 - 5:05AM
Dow Jones News
By Carla Mozee, MarketWatch
ZEW survey on German economic sentiment in focus
European stocks pushed higher Tuesday, with advances in the
basic resources sector poised to lead the market out of a
three-session run of declines.
The Stoxx Europe 600 index bulked up by 0.6% to 374.82. All
sectors rose, led by the basic materials and health care groups.
The pan-European benchmark fell 0.4% on Monday
(http://www.marketwatch.com/story/fiat-maersk-shares-shine-in-lackluster-european-stock-market-2017-08-21),
in part on concerns about another flare-up in tensions between the
U.S. and North Korea.
But investors on Tuesday appeared to set aside those concerns
and concentrate on corporate financial updates. Among these were
updates from mining heavyweights BHP Billiton PLC and Antofagasta
PLC.
BHP shares (BLT.LN) (BHP.AU) (BHP.AU) moved up 3.3% after the
miner said it's planning to sell its onshore U.S. oil and gas
operations
(http://www.marketwatch.com/story/bhp-billiton-looks-to-sell-us-shale-operations-2017-08-21).
The decision followed a push by activist investor Elliott
Management in favor of the move.
BHP also said its final dividend will rise threefold. The miner
swung to a yearly net profit of $5.86 billion, but that was weaker
than anticipated.
Antofagasta shares (ANTO.LN) jumped 4.1%. The copper miner more
than tripled its interim dividend payment
(http://www.marketwatch.com/story/antofagasta-profit-surges-to-triple-dividend-2017-08-22)
after reporting a sharp rise in half-year earnings.
The share-price moves helped guide the Stoxx Europe 600 Basic
Resources Index higher by 1.6%, on course for its best session in
nearly a week.
Economic data: Investors will watch for the ZEW survey on German
economic sentiment for August, due at 10 a.m. London time, or 5
a.m. Eastern Time. Analysts polled by FactSet expected softer
readings for both the current situation and sentiment portions of
the survey.
The euro bought $1.1772, down from $1.1817 late Monday in New
York.
"If the ZEW does come in higher than expected, the next level to
watch is the 1.1840, and this would be an interesting development,
as it would further highlight expectations for Mario Draghi to talk
down the currency during the Jackson Hole meeting at the end of the
week," said ADS Securities researcher Konstantinos Anthis in a
note.
Top central bankers, including Federal Reserve Chairwoman Janet
Yellen and European Central Bank President Mario Draghi, will
gather at the annual symposium in Jackson Hole, Wyo., that starts
Thursday.
Stock movers: Provident Financial (PFG.LN) tumbled 64% after the
U.K.-based lender said it expects to lose between 80 million pounds
and GBP120 million in the third quarter. The profit warning
(http://www.marketwatch.com/story/provident-warns-on-profit-again-ceo-to-leave-2017-08-22),
the second in three months, comes after Provident shifted to using
full-time "customer experience managers" rather than self-employed
agents in its home credit business.
National indexes: France's CAC 40 index rose 0.6% to 5,104.31,
and Germany's DAX 30 index moved up 0.6% to 12,137.29.
The U.K.'s FTSE 100 index gained 0.6% to 7,364.56.
(END) Dow Jones Newswires
August 22, 2017 04:50 ET (08:50 GMT)
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