EUROPE MARKETS: European Stocks Fall As Eurozone Business Activity Slows
February 21 2018 - 5:59AM
Dow Jones News
By Carla Mozee, MarketWatch
Investors receive disappointing updates on manufacturing and
services
European stocks on Wednesday were dragged lower, as investors
received disappointing updates on manufacturing and services
activity in the eurozone and saw a break in the recovery run for
U.S. stocks.
How markets are moving
The Stoxx Europe 600 index fell 0.8% to 377.60 as only the
telecommunications group posted a small gain. Tech and utility
stocks were losing the most. On Tuesday, the benchmark rose 0.6%.
(http://www.marketwatch.com/story/european-stocks-struggle-as-hsbc-bhp-billiton-updates-disappoint-2018-02-20)
Germany's DAX 30 index fell 0.7% to 12,401.35, and Spain's IBEX
35 dropped 1% to 9,799.40.
France's CAC 40 gave up 0.6% at 5,256.65, and the U.K.'s FTSE
100 shed 0.3% at 7,223.53.
Check out: More investors looking to cut U.K. assets as Brexit
uncertainty persists
(http://www.marketwatch.com/story/more-investors-looking-to-cut-uk-assets-as-brexit-uncertainty-persists-2018-02-16)
The euro bought $1.2324, down from $1.2339 late Tuesday in New
York.
The yield on the 10-year German bond fell 3 basis points to
0.70%, according to Tradeweb. Yields fall when prices rise.
What's driving markets
Stocks across the continent opened lower, as the session got
underway with preliminary February manufacturing and services data
from France falling short of expectations. That followed figures
from data firm Markit showing German manufacturing activity at a
six-month low, and overall activity in the eurozone edged back from
a near 12-year high.
European stocks also followed losses on Wall Street, where
equities have been in recovery mode after leading a meltdown in
global equities. U.S. stocks snapped a six-day winning streak
(http://www.marketwatch.com/story/dow-futures-fall-more-than-100-points-signaling-jittery-return-to-trading-2018-02-20)
on the market's return from holiday Tuesday, as 10% slide in shares
of retailer Walmart Inc. (WMT) hurt the S&P 500 Index .
After European trade closes, minutes from the Federal Reserve's
January policy meeting, the last chaired by Janet Yellen, will be
released. Investors will look for clues to the central bank's
thinking on interest rates, which can have a knock-on effect on
global financial markets. The minutes are due 2 p.m. Eastern Time,
or 7 p.m. London time.
Stock movers
Lloyds Banking Group PLC shares (LLOY.LN) rose 1.7% after the
lender said it's launching a share buyback of up to GBP1 billion
($1.40 billion)
(http://www.marketwatch.com/story/lloyds-launches-1-billion-buyback-2017-profit-up-2018-02-21).
In the bank's first full-year results since returning to full
private ownership, pretax profit of GBP5.28 billion for 2017 missed
expectations of GBP5.89 billion.
Glencore PLC shares (GLEN.LN) rallied 4%. The miner and
commodities trader posted a more than fourfold rise in 2017 net
profit for 2017
(http://www.marketwatch.com/story/glencore-profit-up-fourfold-for-2017-beats-views-2018-02-21),
of $5.78 billion, and said it was considering acquisitions.
Economic data
The U.K.'s jobless rate increased unexpectedly for the first
time in nearly two years
(http://www.marketwatch.com/story/uk-jobless-rate-unexpectedly-increases-2018-02-21),
to 4.4% in the final quarter of 2017. The Office for National
Statistics also said wages in the three months to December grew by
an average 2.5%, slightly up from 2.4% in the January period. But
wage growth is still outpaced by inflation which is running at
3%.
(END) Dow Jones Newswires
February 21, 2018 05:44 ET (10:44 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Aug 2024 to Sep 2024
FTSE 100
Index Chart
From Sep 2023 to Sep 2024