EUROPE MARKETS: European Stocks Trade Cautiously Higher; Renault's Stock Falls On Ghosn Report
November 19 2018 - 9:12AM
Dow Jones News
By Mark DeCambre, MarketWatch
Renault shares under pressure amid Carlos Ghosn news
European markets edged higher Monday but gains were capped by
nagging political worries and a slide in shares of a key auto maker
after the board at alliance Renault Nissan said it would oust
Chairman Carlos Ghosn.
What are markets doing?
The Stoxx Europe 600 gained 0.2% at 358.37, after notching a
weekly loss of 2.2% on Friday.
The French CAC 40 ticked 0.1% higher at 5,031.22, following a
weekly slip of 1.6%, while Germany's DAX 30 was trading at
break-even levels at 11,348.55. The German bourse booked a 1.6%
weekly decline on Friday. The U.K.'s FTSE 100 advanced 0.6% to
reach 7,058.86 after it produced a weekly drop of 1.3%.
The euro rose to $1.1435, compared with $1.1418 on Friday in New
York, while the pound was last trading at $1.2840, up from $1.2833
in the previous session.
What drove the market?
U.K. Prime Minister Theresa May apparently survived the weekend
without a direct challenge to her leadership, as she attempted to
follow through with contentious plans to see Britain's exit from
the European Union. The prime minister has warned that attempts to
oust her would only delay Brexit efforts in a Sky News interview
(https://news.sky.com/story/theresa-may-tells-rebels-threatening-a-leadership-challenge-they-may-delay-or-stop-brexit-11557192).
Elsewhere in Europe, investors continue to watch developments
between Italy and the EU. According to recent reports, Deputy Prime
Minister Matteo Salvini said eurozone reform due to be presented by
France and Germany are unlikely to get Italy's backing
(https://www.euronews.com/2018/11/19/italy-unlikely-to-back-franco-german-euro-reform-plans-salvini).
Rome and Brussels are locked in a protracted battle that
threatens the stability of the eurozone because the country's
budget plans run afoul of the European Commission's fiscal
rules.
Stock movers
Monday trade was colored by developments around Renault
SA(RNO.FR) after its CEO, Carlos Ghosn, was arrested and Nissan
Motor Co. Ltd. (NSANY) said it planned to out him, citing
misconduct. The development was weighing on shares of French-listed
Renault. Shares of Renault were down 8.4%.
(END) Dow Jones Newswires
November 19, 2018 08:57 ET (13:57 GMT)
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