European Stocks Edge Lower Amid Weak Data
June 27 2019 - 8:46AM
Dow Jones News
By Paul J. Davies
-- Boeing fell as much as 6.25% premarket before partial
recovery
-- S&P 500 futures up 0.2%, Stoxx Europe 600 slips 0.2%
-- Brent crude falls 1.1%
U.S. aircraft maker Boeing Co. tumbled as much as 6.25% in
premarket trading after news late Wednesday that federal regulators
identified a new software problem with the troubled 737 MAX, which
has been grounded after two fatal crashes.
U.S. stock-index futures were mixed, with the Dow off 0.3%,
while the S&P 500 was up 0.2%.
European indexes fell, with the Stoxx Europe 600 down 0.3%,
after eurozone survey data showed manufacturers in the bloc were at
their most downbeat this month since September 2013. European
consumers were more optimistic, but the overall European Economic
Sentiment Indicator hit its lowest level since August 2016.
The slowdown in Europe is feeding expectations of potential rate
cuts to come from the European Central Bank, according to
economists. Yields on 10-year German bunds fell further, hitting
minus 0.303% ahead of German inflation data. U.S. 10-year Treasury
yields also fell to 2.041%, from 2.048% Wednesday.
Shares of Bayer AG were up 7.9% after the company set up a
supervisory committee to address its legal battle with cancer
patients over its herbicide Roundup. Clothing giant Hennes &
Mauritz rose 9.8% after reporting strong June sales, along with
second-quarter results that met expectations.
Asian stocks rose on hopes that the U.S. and China might reach
some kind of settlement to their trade dispute at the G-20 meeting
of the world's largest economies this weekend. Chinese A-shares
were up 0.7%, while shares in Hong Kong were 1.4% higher.
A trade deal wouldn't necessarily mean an immediate boost for
economic activity: Singapore's central bank issued a warning on
growth for the year on Thursday, with manufacturing and trade
looking particularly weak.
Exports from the Southeast Asian city-state have dropped more
than 9% since the start of the year, and analysts at Maybank, a
local investment bank, warned that even if a trade were struck
soon, its effects might only materialize in the final quarter of
this year. Singapore's Straits Times index was up 0.8%
Thursday.
Indian stocks were stronger for most of the session but faltered
toward the close after President Trump attacked the country's
tariffs on U.S. goods. The president called India's tariffs
"unacceptable" ahead of a planned meeting Friday with Prime
Minister Narendra Modi.
Indian economic growth disappointed in the first quarter,
leading the central bank to cut rates for a third time in a row
this month, supporting markets but prompting some concerns about
inflation risks, especially for food. The BSE 100 had been up more
than 0.5%, but later lost ground to trade 0.2% higher.
Gold also fell, down 0.5% at $1,407.90 an ounce.
Write to Paul J. Davies at paul.davies@wsj.com
(END) Dow Jones Newswires
June 27, 2019 08:31 ET (12:31 GMT)
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