EUROPE MARKETS: European Stocks Mark Time As Investors Stay Focused On Fed Decision
September 20 2017 - 5:42AM
Dow Jones News
By Carla Mozee, MarketWatch
Thyssenkrupp shares rises on Tata deal news
European stocks wavered Wednesday, with investors seeming to
hold off before the U.S. Federal Reserve's policy decision, even as
they assessed deal news from Thyssenkrupp and other corporate
updates.
The Stoxx Europe 600 index was down less than 1 point at 382.01,
with utility, financial and tech stocks lower. Telecoms, consumer
services and health care were among the advancing sectors. On
Tuesday, the pan-European benchmark closed up 0.1%.
(http://www.marketwatch.com/story/european-stocks-slip-as-traders-wait-for-fed-rate-update-2017-09-19)
Most major European indexes were little changed before the
highly anticipated release of the Fed's policy statement
(http://www.marketwatch.com/story/hey-fed-boss-janet-yellen-inflation-is-still-low-and-stocks-are-soaring-what-say-you-2017-09-18)
and the press conference by Fed Chairwoman Janet Yellen. Germany's
DAX 30 index and France's CAC 40 index each ticked up by 0.1%,
while Spain's IBEX 35 fell 0.5% to 10,324.
The U.S. central bank is widely expected to keep interest rates
on hold but to start unwinding its $4.5 trillion balance sheet
(http://www.marketwatch.com/story/feds-balance-sheet-unwind-will-be-moment-of-truth-for-financial-markets-2017-09-18).
Analysts said the statement may be followed by moves in several
asset classes, such as stocks, currencies and gold.
"Any caution on the economic outlook is likely to push out the
prospect that we could see another rate rise this year, and we
shouldn't forget that the problem of the [U.S.] debt ceiling has
been pushed out into December," said Michael Hewson, chief market
analyst at CMC Markets UK.
"If that remains unresolved by the time of the December meeting,
then it makes the prospect of a rate move even less likely," he
said in a note.
The euro bought $1.2004, slightly up from $1.1994 late Tuesday
in New York. But the euro has climbed about 14% against the
greenback this year.
"Depending on the post-Fed USD-appetite, the EURUSD could return
to its 200-hour moving average (1.1962), or pursue its short-term
positive trend," said LGC senior market analyst Ipek
Ozkardeskaya.
The Fed policy decision is due at 7 p.m. London time, or 2 p.m
Eastern Time. Yellen's press conference is set to start at 2:30
p.m. Eastern Time.
Stock movers: Thyssenkrupp AG (TKA.XE) shares climbed 3.6% after
the company said it has made an agreement with Tata Steel Ltd.
(500470.BY) to combine their European steel operations
(http://www.marketwatch.com/story/thyssenkrupp-tata-seal-european-steel-deal-2017-09-20).
The new company would be the second-largest steel producer in
Europe after ArcelorMittal (MT) . ArcelorMittal shares rose
1.2%.
Deutsche Telekom AG (DTEGY) gained 1.2%, extending gains logged
Tuesday. Those moves followed a CNBC report that Sprint Corp. (S)
is in talks to merge with Deutsche Telekom's T-Mobile US Inc.
(TMUS) unit.
Topping the Stoxx 600, Kingfisher PLC (KGF.LN) shares popped up
6.2%. The home improvement retailer said it is on track to meet
targets in the second year of its five-year restructuring plan, as
it raised its dividend. But Kingfisher's first-half profit fell 6%
(http://www.marketwatch.com/story/kingfisher-pretax-profit-hurt-by-weak-french-sales-2017-09-20),
and it stayed cautious in its outlook for its core U.K. and French
markets.
Kingfisher was the best performer on the U.K.'s FTSE 100 The
London benchmark fell 0.2% on Wednesday as the pound spiked above
$1.36, moving in the wake of stronger-than-expected retail sales
figures for August.
Read:Don't call the German election boring--it could be huge
leap or setback for the eurozone
(http://www.marketwatch.com/story/dont-call-the-german-election-boring-it-could-mean-a-huge-shift-for-the-eurozone-2017-09-18)
(http://www.marketwatch.com/story/dont-call-the-german-election-boring-it-could-mean-a-huge-shift-for-the-eurozone-2017-09-18)Also
read:German election: Who's Merkel up against and what are their
chances?
(http://www.marketwatch.com/story/german-election-whos-merkel-up-against-and-how-could-they-shape-the-new-government-2017-08-31)
(END) Dow Jones Newswires
September 20, 2017 05:27 ET (09:27 GMT)
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