EUROPE MARKETS: European Stocks Step Back From Highest In 5 Weeks, But Retailers Gain Ground
December 13 2017 - 5:34AM
Dow Jones News
By Carla Mozee, MarketWatch
Analyst: It's a typical low-volume lead up on a Fed-decision
day
European stocks pulled back from a five-week high Wednesday,
with investors bracing for an expected hike in borrowing costs by
the Federal Reserve, while retail shares were showing strength.
How markets are moving: The Stoxx Europe 600 index was down 0.1%
to 391.22, with only the consumer services and financial sectors
moving higher. Losses were led by utility and telecom shares. On
Tuesday, the benchmark climbed 0.7%
(http://www.marketwatch.com/story/european-stocks-edge-slightly-higher-as-oil-shares-charge-up-2017-12-12)
for its highest close since Nov. 8, according to FactSet data.
In Frankfurt, Germany's DAX 30 index fell 0.1% to 13,175.44, and
in Paris, the CAC 40 was off less than 2 points at 5,425.89.
But in Madrid, the IBEX 35 was up 0.3% at 10,319.10. In London,
the FTSE 100 shed 1 point to 7,499.53
"European stock markets opened mixed on Wednesday, supported by
some well-received corporate results but weighed down by caution
ahead of the Federal Reserve interest-rate decision. It's a
typically low-[volume] lead up to the Federal Open Market
Committee," meeting later Wednesday, said Jasper Lawler, head of
research at London Capital Group, in a note.
The euro traded at $1.1744, down from $1.1743 late Tuesday in
New York.
What's moving markets: Markets have essentially priced in an
announcement of a quarter-percentage-point interest-rate hike by
the U.S. central bank.
But there are still questions about how many more rate hikes
will come from the Fed, especially as its moves influence prices
for a range of assets. Outgoing Fed Chairwoman Janet Yellen will
hold a press conference at the conclusion of the bank's two-day
meeting. The decision is due at 7:00 p.m. London time, or 2 p.m.
Eastern. Yellen is scheduled to speak at 2:30 p.m. Eastern.
The European Central Bank and the Bank of England will issue
policy decision on Thursday, with investors eager to hear more on
their thinking on inflation and economic growth. In the U.K.,
consumer price inflation has reached 3.1%, more than a percentage
point higher than the central bank's target.
Stock movers: Shares of Inditex (ITX.MC) gained 3.2% after the
parent company of apparel retailer Zara said the winter sales
season got off to a more robust start than anticipated
(http://www.marketwatch.com/story/zara-parent-inditex-profit-rises-but-margin-falls-2017-12-13),
with revenue rising 6% in the nine-month period.
NCC AB shares (NCC-A.SK) tumbled 9% as the Swedish construction
company said it's raising provisions in construction and civil
engineering projects during the fourth quarter and warned that
operating profit "is expected to be close to zero."
Dixons Carphone PLC shares (DC.LN) rose 3.5% as the electronics
retailer said it logged record Black Friday sales
(http://www.marketwatch.com/story/dixons-carphone-tackling-mobiles-unit-performance-2017-12-13)
and that it's working on addressing issues at its mobile
division.
(END) Dow Jones Newswires
December 13, 2017 05:19 ET (10:19 GMT)
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