EUROPE MARKETS: European Stocks Drop Sharply As Trade Fears Lead To 'dark Mood'
June 25 2018 - 5:52AM
Dow Jones News
By Victor Reklaitis, MarketWatch
But Ambu shares jump as analysts say it's a buy
European stocks retreated Monday, weighed down by another bout
of trade-related angst.
U.S. President Donald Trump on Sunday made new threats
(http://www.marketwatch.com/story/trumps-latest-threat-to-us-trade-partners-drop-tariffs-or-face-consequences-2018-06-24)
against America's trade partners, and he also is reportedly
readying more regulatory measures targeting China
(http://www.marketwatch.com/story/trump-seeks-curbs-on-chinese-investment-in-us-tech-firms-exports-to-china-2018-06-24).
How markets are performing
The Stoxx Europe 600 Index shed 1% to 381.10, building on last
week's drop. The pan-European benchmark rose 1.1% on Friday
(http://www.marketwatch.com/story/greece-leads-european-stocks-higher-on-bailout-green-light-2018-06-22),
but still suffered a weekly decline of 1.1%.
In Monday action, Germany's DAX 30 fell 1.3% to 12,419.85, while
France's CAC 40 was down 0.9% to 5,339.58. The U.K.'s FTSE 100
(http://www.marketwatch.com/story/ftse-100-falls-as-trade-fears-show-no-sign-of-abating-2018-06-25)lost
0.9% to 7,612.69.
The euro inched up to $1.1660 from $1.1656 late Friday in New
York, not making a big move after a closely watched business
climate index from Germany's Ifo Institute came in roughly as
expected. The gauge registered a June reading of 101.8, down from
just above 102 last month and about in line with forecasts
(http://www.marketwatch.com/story/german-business-sentiment-falls-says-ifo-survey-2018-06-25)
for 101.6.
Don't miss:Two years after Brexit vote, these charts show the
U.K. economy losing momentum
(http://www.marketwatch.com/story/two-years-after-brexit-vote-these-charts-show-the-uk-economy-losing-momentum-2018-06-22)
What's driving markets
Investors are remaining concerned that trade tensions between
the U.S. and major trading partners such as China and the European
Union could develop into a big drag on the global economy.
In his new threats
(http://www.marketwatch.com/story/trumps-latest-threat-to-us-trade-partners-drop-tariffs-or-face-consequences-2018-06-24)
against trade partners, Trump called for them to remove trade
barriers and tariffs, or face the consequences. In addition, the
American president plans to bar many Chinese companies from
investing in U.S. technology firms, and by blocking additional
technology exports to Beijing, said a Wall Street Journal report
(http://www.marketwatch.com/story/trump-seeks-curbs-on-chinese-investment-in-us-tech-firms-exports-to-china-2018-06-24)
citing people familiar with administration plans.
Check out:And the most American-made car is...
(http://www.marketwatch.com/story/and-the-most-american-made-car-is-2018-06-21)
Meanwhile, the Turkish lira jumped as currency markets opened
Monday, in the wake of a victory for incumbent President Recep
Tayyip Erdogan
(http://www.marketwatch.com/story/turkeys-erdogan-wins-sweeping-presidential-victory-extends-grip-on-power-2018-06-24)
in Sunday's presidential and parliamentary elections. But many
analysts suggested that any relief rally for the currency would be
short-lived
(http://www.marketwatch.com/story/turkish-lira-jumps-after-erdogan-wins-in-elections-2018-06-25),
as investors will now turn to lingering long-term concerns.
What are strategists saying?
"The dark mood over global markets returns," said Ken Odeluga, a
City Index analyst in a note.
There is "increasing pessimism that a full-blown U.S.-China
trade war may be unavoidable," Odeluga added. The two countries
have the world's two biggest economies.
Check out:Why a major trade war could mean a 'full-blown
recession'
(http://www.marketwatch.com/story/why-a-major-trade-war-could-mean-a-full-blown-recession-2018-06-22)
Stock movers
Prysmian SpA (PRY.MI)tumbled 6% for the Stoxx Europe 600's
biggest drop after the Italian cable maker issued a profit warning,
citing technical issues with an undersea cable project.
On the up side, Ambu A/S shares (AMBU-B.KO)gained 7% for the
Stoxx Europe 600's largest gain, as published reports said J.P.
Morgan analysts started coverage of the Danish health-care
technology company with a rating of overweight, or buy.
Shares in oil giants Royal Dutch Shell PLC (RDSA.LN)
(RDSA.LN)and BP PLC (BP.LN) (BP.LN)fell 0.6% and 1.5%,
respectively, as Brent crude futures
(http://www.marketwatch.com/story/brent-slides-after-opec-lifts-output-caps-2018-06-25)declined.
Oil traders are reacting to this weekend's agreement among key
producers to lift production caps.
What economic news is in focus?
The European Central Bank won't take action on raising
short-term interest rates until its October 2019 meeting
(http://www.marketwatch.com/story/ecb-official-signals-no-rate-hike-until-october-2019-at-the-earliest-2018-06-25),
a top ECB official signaled in an interview with The Wall Street
Journal.
(END) Dow Jones Newswires
June 25, 2018 05:37 ET (09:37 GMT)
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