EUROPE MARKETS: European Stocks Finish Lower After Merkel Says Euro 'too Weak'
May 22 2017 - 12:49PM
Dow Jones News
By Carla Mozee and Sara Sjolin, MarketWatch
UCB shares slide on downbeat update
European stocks ended a choppy session slightly lower, weighed
by German stocks, as the euro rallied after comments about the
shared currency by German Chancellor Angela Merkel.
Speaking at an event with students in Berlin, Merkel blamed
European Central Bank policies for making the euro "too weak" and
said it has made German products cheaper. Those comments sent the
euro to an intraday high of $1.1265
(http://www.marketwatch.com/story/pound-declines-after-shift-in-uk-election-polls-euro-climbs-2017-05-22),
the highest level since November.
The stronger currency weighed on Germany's DAX 30 index , which
is made up of companies that are heavily dependent on exports. The
benchmark fell 0.2% to end at 12,619.46, led by a 1.3% loss for
industrial heavyweight Siemens AG (SIE.XE) (SIE.XE).
More broadly in Europe, the Stoxx Europe 600 index ) fell 0.1%
to 391.14.
The pan-European benchmark last week fell 1%--the first decline
in four weeks. The decline was largely pegged to a rout in global
equities that followed a report that U.S. President Donald Trump
tried to stop
(http://www.marketwatch.com/story/trump-asked-comey-to-drop-flynn-investigation-report-2017-05-16)
a Federal Bureau of Investigation probe into links between his
administration and Russian officials.
"The political risk surrounding Donald Trump is beginning to
subside," said Richard Perry, market analyst at Hantec Markets, in
a note.
"It is interesting to see markets beginning to look more
settled...as the agenda turns away from Trump's domestic woes and
more towards international trade deals," he added.
Trump while in Saudi Arabia this weekend oversaw a signing
ceremony for a $110 billion package of new arms deals.
(Trump,%20Saudi%20Arabia,%20other%20Gulf%20states%20sign%20pacts%20worth%20$350%20billion%20meant%20to%20counterbalance%20Iran)
Last week's New York Times report fueled questions about the
Trump administration's ability to push through tax cuts, higher
fiscal spending and looser regulations. The prospect of an economic
boost from the proposed changes had helped to push stocks
world-wide to highs.
Read:Here's how impeachment works--and why Trump is safe for now
(http://www.marketwatch.com/story/heres-how-impeachment-works---and-why-trump-is-safe-for-now-2017-05-17)
(http://www.marketwatch.com/story/heres-how-impeachment-works---and-why-trump-is-safe-for-now-2017-05-17)Also
on the radar Monday was a meeting of eurozone finance ministers and
the International Monetary Fund, and investors will watch whether
they can agree to provide debt relief to Greece after the country
agreed to new austerity measures
(http://www.marketwatch.com/story/greek-parliament-approves-new-austerity-measures-2017-05-19).
In Athens, the Athex Composite ended 0.6% higher at 788.53.
Individual indexes: France's CAC 40 ended marginally lower at
5,322.88, while the U.K.'s FTSE 100 rose 0.3% to 7,496.24
(http://www.marketwatch.com/story/miners-oil-shares-lead-the-ftse-100-higher-2017-05-22).
Stocks in London got a boost from a weaker pound that dropped after
a poll showed support for Theresa May's Conservative Party is
falling ahead of the June 8 vote
Stock movers: Clariant AG shares (CLN.EB) jumped 3.5% after the
Swiss chemicals company and Huntsman Corp. (HUN) reached an
agreement to merge
(http://www.marketwatch.com/story/huntsman-clariant-to-combine-into-20-bln-company-2017-05-22)
in an all-stock deal that would create a company worth about $14
billion.
Aegon NV (AGN.AE) climbed 6.5% after the Dutch insurer said it
would sell its two largest U.S. life businesses.
(http://www.marketwatch.com/story/aegon-to-sell-2-runoff-businesses-to-wilton-re-2017-05-22)
UCB SA (UCB.BT) tumbled 18% the Brussels-based company said it
doesn't expect U.S. approval of its romosozumab treatment for
postmenopausal women with osteoporosis to occur in 2017. A "newly
observed cardiovascular safety signal will have to be assessed,"
although a study of the treatment met primary and secondary
endpoints, said UCB, which is working on romosozumab with Amgen
Inc. (AMGN).
Royal Bank of Scotland Group PLC shares (RBS.LN) (RBS.LN) ended
down 0.5% after the start of a High Court trial was adjourned by 24
hours after the lender reportedly doubled its settlement offer
(http://www.marketwatch.com/story/rbs-doubles-settlement-offer-to-shareholders-ahead-of-high-court-battle-report-2017-05-22).
(END) Dow Jones Newswires
May 22, 2017 12:34 ET (16:34 GMT)
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