EUROPE MARKETS: Europe Stocks Book Fourth Win In A Row
September 19 2018 - 12:32PM
Dow Jones News
By Barbara Kollmeyer, MarketWatch , Anneken Tappe
Materials and chemicals stocks lead gainers
Europe's main stock gauge ended Wednesday's session higher,
booking its fourth straight win thanks to gains in the materials
and chemicals sectors.
Danske Bank AS stood out among the losers as its top executive
stepped down over a money-laundering scandal.
What are markets doing?
The Stoxx Europe 600 added 0.3% to close at 379.98, in a week
that has delivered a 0.6% rise so far. Shares squeaked by with a
0.1% gain on Tuesday
(http://www.marketwatch.com/story/european-stocks-rise-led-by-surge-for-biotech-galapagos-2018-09-12).
Germany's DAX 30 finished 0.5% higher at 12,219.02, while
France's CAC 40 added 0.6% to end at 5,393.74. The U.K.'s FTSE 100
closed 0.4% higher at 7,330.11.
The euro was little changed at $1.1686 against the dollar. The
pound bought $1.3161, compared with $1.3147.
What is driving the market?
The pound shot up earlier Wednesday, reaching above $1.32 after
U.K. inflation jumped to a surprise six-month high of 2.7%. The
news boosted banks on the view that the Bank of England may be
pressure into more interest rate increases after an August hike
(http://www.marketwatch.com/story/bank-of-england-raises-key-lending-rate-to-075-2018-08-02).
But the currency eased back
(http://www.marketwatch.com/story/uks-may-reported-to-reject-irish-border-proposal-british-pound-slumps-2018-09-19-7912642)
after a report
(https://www.thetimes.co.uk/edition/news/theresa-may-to-reject-improved-eu-offer-on-irish-border-3mwvjzg2r)that
U.K. Prime Minister Theresa May would
(http://www.marketwatch.com/story/uks-may-reported-to-reject-irish-border-proposal-british-pound-slumps-2018-09-19-7912642)reject
the proposal from the EU on the Irish border.
Read:Why another Brexit summit is unlikely to put investors at
ease
(http://www.marketwatch.com/story/why-another-brexit-summit-is-unlikely-to-put-investors-at-ease-2018-09-18)
Stocks in Asia climbed. U.S. stocks traded mostly higher.
What are analysts saying?
While U.K. banks were getting a lift for now from revived
rate-hike hopes, "ambivalent implications for growth and other
consumer-led activity," could eventually weigh on those stocks,
said Ken Odeluga, market analyst at City Index, in a note.
"For now, bank shares are among sectors participating with gains
in Continental markets, though STOXX's mining-related basic
resource index is again at the front, auto and parts shares aren't
far below. Further delay before Beijing responds to Washington's
invitation could be the point on which global investor consensus
could begin to show cracks, even as the White House weighs an
ex-ante to counter-retaliate," he said.
Stock movers
Among the top decliners, Danske Bank (DANSKE.KO) finished 3.4%
lower after CEO Thomas Borgen announced his resignation
(http://www.marketwatch.com/story/danske-bank-finds-200b-in-suspect-transactions-2018-09-19)
amid the outcome of an internal probe that money laundering was
involved in a "large portion" of more than $200 billion in
transactions from a branch in Estonia.
Adecco Group AG (ADEN.EB) slumped over 6% after the temp
staffing firm reported markedly slower growth
(http://www.marketwatch.com/story/adecco-points-to-europe-slowdown-in-3q-performance-2018-09-19)
in the third quarter for continental Europe.
On the upside, a number of mining stocks were tracking higher,
with Anglo American PLC (AAL.LN) closing up 5.1%, Antofogasta PLC
(ANTO.LN) up 5.9% and Rio Tinto PLC (RIO.LN) (RIO.LN) gaining
3%.
In London, HSBC Holdings PLC (HSBA.LN) closed up 1.8%, Royal
Bank of Scotland Group PLC (RBS.LN) (RBS.LN) jumped to end 2.7%
higher and Barclays PLC (BCS) (BCS) closed 2.2% higher.
(END) Dow Jones Newswires
September 19, 2018 12:17 ET (16:17 GMT)
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