EUROPE MARKETS: European Stocks Look For 2nd Straight Win Despite Choppy Trade
November 21 2017 - 6:53AM
Dow Jones News
By Carla Mozee, MarketWatch
EasyJet shares jump by the most in 4 years
European stocks rose Tuesday, aided by gains for airline easyJet
PLC and car maker Volkswagen AG, but the direction of trade has
been choppy as investors weigh the possibility of a new election in
Germany alongside a new round of corporate earnings reports.
What markets are doing: The Stoxx Europe 600 , which has been
darting between small gains and losses, was recently 0.3% higher at
387.37, with only the consumer services and telecom sectors losing
ground. The regional benchmark on Monday tacked on 0.7% and logged
its highest close since Nov. 10, according to FactSet data.
In Frankfurt, the DAX 30 index turned up 0.5% to 13,125.76. The
index on Monday reversed losses and closed up 0.5%. France's CAC 40
reversed course and rose 0.5% to 5,366.04, and Spain's IBEX 35
gained 0.4% to 10,061.50.
The U.K.'s FTSE 100 was up 0.2% at 7,406.25.
The euro bought $1.1735, not far from $1.1733 late Monday in New
York. Against the pound, the euro traded hands at GBP0.8869 versus
GBP0.8866 on Monday.
What's moving markets: Prospects of a snap election were
heightened after German Chancellor Angela Merkel late Monday said
she would prefer voters go back to ballot boxes over running a
minority government. This comes after the breakdown in negotiations
to form a "Jamaica" governing coalition of parties over the
weekend.
Read:Eurozone faces uncertainty after coalition talks collapse
(http://www.marketwatch.com/story/euro-plummets-as-uncertainty-in-germany-rattles-markets-2017-11-19)
But broadly lower moves for the euro against its major rivals
appeared to aid shares of European exporters, as a stronger value
for the shared currency can make their products more expensive for
overseas clients to purchase.
What strategists are saying: "Early dips have been bought in
European equities, as investors take their cue from the recovery in
U.S. stocks last night. Yesterday there was a brief panic in German
equities as the prospect of a second election loomed, but today
Merkel's apparent preference for this option has not elicited much
of a reaction, even if it seems like an odd move given that a
broadly similar result is likely," said IG chief market analyst
Chris Beauchamp in a note.
Stock movers: Aggreko PLC shares (AGK.LN) slid 10% after the
supplier of generators and chillers said quarterly revenue at its
power solutions utility division fell 11%, stemming from its
business in Argentina. The company did maintained its full-year
guidance.
EasyJet (EZJ.LN) bounced up 6.6% after the low-cost airline said
passenger traffic rose 10% in fiscal 2017
(http://www.marketwatch.com/story/easyjet-net-profit-down-24-passenger-traffic-up-2017-11-21)
and that forward bookings for the first quarter of 2018 are ahead
of last year. Net profit for the full year fell 24% to GBP325
million ($430 million). The stock was on track for its biggest
daily gain in four years.
Volkswagen (VOW.XE) leapt 4.3%, trading near the top of the
Stoxx 600 and adding to Monday's rise of 4.2% after the car maker
raised its mid-term sales and profit forecast.
Babcock International Group PLC (BAB.LN) dropped 6%, with the
defense contractor saying a U.K. government review may delay the
introduction of large programs to upgrade some land-based military
equipment.
Economic data: The U.K. government borrowed more in October than
it did a year ago
(http://www.marketwatch.com/story/uk-public-borrowing-increases-in-october-2017-11-21)
as price growth pushed up the cost of servicing inflation-linked
debt, according to the Office for National Statistics. Britain's
borrowing increased by GBP500 million to GBP8 billion. The figures
arrived before the U.K. government presents its budget on
Wednesday.
(END) Dow Jones Newswires
November 21, 2017 06:38 ET (11:38 GMT)
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