EUROPE MARKETS: European Stocks Struggle As PMIs Fail To Provide A Lift
April 23 2018 - 5:06AM
Dow Jones News
By Carla Mozee, MarketWatch
European stocks pulled lower Monday, as investors juggled a new
pile of corporate earnings, including from Swiss lender UBS Group
AG, alongside fresh monthly readings on European services and
manufacturing activity that showed signs of weakness.
The moves come ahead of this week's European Central Bank
meeting.
How indexes are moving
The Stoxx Europe 600 index fell 0.2% to 381.02, as the consumer
goods and utility groups lost the most. But the health care and
telecom groups moved higher. The index on Friday ended fractionally
lower
(http://www.marketwatch.com/story/european-stocks-fall-from-7-week-high-as-consumer-goods-shares-struggle-2018-04-20),
but ended last week up by 0.7%, a fourth consecutive weekly
advance.
In Frankfurt, the DAX 30 index fell 0.3% to 12,501.97 and in
Paris, the CAC 40 index fell 0.3% to 5,395.72. The U.K.'s FTSE 100
index was up 0.1% to 7,372.99.
The euro bought $1.2271, down from $1.2289 late Thursday in New
York.
What's driving the market
European stocks started the new trading week in the red, unable
to get a lift from flash manufacturing and services PMI reports
from the eurozone, Germany and France largely beat expectations.
The reports come after European Central Bank President Mario Draghi
reportedly said on Friday that the region's growth cycle may have
peaked.
Investors will watch what Draghi and the ECB will say about
continuing the bank's quantitative easing measures when they
release the next policy decision on Thursday.
Also in focus Monday is a continued rise in U.S. Treasury
yields, as strengthening inflation prospects added to expectations
of a more hawkish approach from the Federal Reserve. The yield on
the 10-year benchmark bond was approaching 3%.
What data are in focus?
IHS Markit said it's flash April reading for eurozone services
activity was at 55.0, above a FactSet estimate of 54.8. The flash
manufacturing PMI of 56.0 met expectations.
Stocks in focus
UBS (UBS) fell 4% even as the Swiss bank's first-quarter
earnings net profit rose 19%, supported by the performance of its
wealth-management unit
(http://www.marketwatch.com/story/ubs-profit-lifted-by-wealth-management-gains-2018-04-23).
Royal Philips NV shares (PHG) rose 3.8% as the Dutch technology
company backed its target for the 2017-2020 years of 4%-6%
comparable sales growth and an average annual 100 basis points
improvement in adjusted Ebita margin.
(END) Dow Jones Newswires
April 23, 2018 04:51 ET (08:51 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024