By Carla Mozee, MarketWatch
Daimler down on emissions report; Reckitt Benckiser
disappoints
European stocks struggled to make headway Monday, after the
regional market logged its best week in more than a year following
the recent selloff.
Traders were searching for a catalyst on what is expected to be
a quiet day, with equity markets in the U.S. and China closed for
holidays.
Falls in shares of German auto maker Daimler AG and consumer
products heavyweight Reckitt Benckiser Group PLC dragged on the
pan-European index.
How markets are moving
The Stoxx Europe 600 index shed 0.4% to 379.29, losing its grip
on a small gain logged in early trade. The consumer goods sector
lost the most, while the financial group led advancing sectors.
The regional benchmark last week leapt 3.3%
(http://www.marketwatch.com/story/european-stocks-set-for-best-week-since-2016-alongside-wall-streets-recovery-2018-02-16),
to notch its best week since December 2016, according to FactSet
data.
On Monday, Germany's DAX 30 index fell 0.3% to 12,412.16, and
France's CAC 40 lost 0.3% to 5,268.82.
The U.K.'s FTSE 100 was down 0.3% to reach 7,276.29, and Spain's
IBEX 35 was off 0.1% at 9,824.60.
Check out: More investors looking to cut U.K. assets as Brexit
uncertainty persists
(http://www.marketwatch.com/story/more-investors-looking-to-cut-uk-assets-as-brexit-uncertainty-persists-2018-02-16)
The euro bought $1.2392, little changed from $1.2409 late Friday
in New York.
In the fixed-income market, the yield on the 10-year German bund
rose 3 basis points to 0.737%, according to Tradeweb. Yields rose
when prices fall.
What's driving markets
European stocks were giving back some of Friday's advance, which
keyed off moves on Wall Street, although the Dow and S&P 500
eventually closed off session highs and the Nasdaq turned
lower.
Analysts have said volumes for European markets will likely be
lower than usual on Monday, with U.S. markets closed for the
Presidents Day Holiday. In Frankfurt, DAX volume was running at 35
million shares in afternoon trade, according to FactSet data, and
average daily volume has been 122.33 million shares over the past
30 days.
Read:Which markets are closed on Presidents Day?
(http://www.marketwatch.com/story/which-markets-are-closed-on-presidents-day-2018-02-14)
Global equities last week rebounded from a meltdown earlier this
month that yanked the S&P 500 and other major benchmarks from
record highs.
What strategists are saying
"Stock markets in Europe are mixed this morning as a lack of a
major macro-economic news has left some traders uninspired," said
David Madden, market analyst at CMC Markets, in a note.
"Chinese markets were close overnight as the country celebrated
Spring Festival, and the U.S. and Canadian stock markets will be
closed today as they celebrate Presidents Day and Family Day,
respectively. When a number of major players on the markets are
closed due to holidays, it is common to see low volatility on those
exchanges that are open," he said.
Stock movers
Reckitt Benckiser Group (RB.LN) sank 6.7% as the maker of Lysol,
Clearasil and other consumer-goods products posted flat
like-for-like 2017 sales
(http://www.marketwatch.com/story/reckitt-benckiser-2017-profit-rises-on-weak-pound-2018-02-19),
although that was line with guidance that was revised downward over
the course of the year.
Daimler (DAI.XE) shares fell 2% after German weekly Bild
reported Sunday that the car maker may have used software to help
some of its vehicles pass U.S. diesel-emissions tests
(http://www.marketwatch.com/story/daimler-may-have-cheated-on-emissions-bild-2018-02-19).
Bild cited internal documents from U.S. investigators.
The financial sector was led higher by bank stocks, pushing the
Stoxx 600 Bank up 0.3%. That index was looking at a fourth session
of gains, with shares of lenders gaining alongside rises in global
bond yields.
Monday's gainers included Deutsche Bank AG (DBK.XE) and UBS
Group AG , up 2.5% and 0.4%, respectively.
ECB watch
Discussions were reportedly taking place Monday between eurozone
finance ministers over who should become succeed European Central
Bank Vice President Vitor Constâncio.
A vote due to take place Tuesday was widely expected to see
Spain's Economy Minister Luis de Guindos voted in over Ireland's
Central Bank Governor Philip Lane.
"Madrid has been pushing hard for this, arguing that Spain is
underrepresented at the top of Europe's institutions," wrote
Constantine Fraser, political analyst at TS Lombard, in a note last
week.
On Thursday, minutes from the ECB's January meeting are set for
publication. That account is "something which will give us an idea
if the ECB is going to end their tapering program as per the plan,"
said Naeem Aslam, chief market analyst at Think Markets.
"It won't be long before the market participant would expect the
ECB to start talking about the increase in the interest rate. Such
an event would be highly bullish for the euro traders," Aslam said
in a note.
(END) Dow Jones Newswires
February 19, 2018 08:48 ET (13:48 GMT)
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