EUROPE MARKETS: European Stocks End In The Green As Auto And Materials Shares Race Higher
August 07 2018 - 12:44PM
Dow Jones News
By Barbara Kollmeyer and Mark DeCambre, MarketWatch
German industrial production declines
German stocks finished higher Tuesday, reflecting a broadly
upbeat European session, as equities in the region took inspiration
from gains across the globe, and investors appeared to momentarily
set aside anxieties pegged to trade-war tensions.
What are markets doing?
The Stoxx Europe 600 index rose 0.5% to close at 390.49, after
finishing down
(http://www.marketwatch.com/story/european-stocks-waver-as-trade-tensions-flare-up-again-2018-08-06)
0.1% on Monday. The index was looking at its best close since late
July.
The German DAX 30 index advanced 0.4% to 12,648.09, while the
FTSE MIB Italy index rallied by 1.3% to close at 21,853.81.
France's CAC 40 index rose 0.8% to finish the session at 5,521.31
and the FTSE 100 index climbed 0.7% to end at 7,718.48.
The euro was last up 0.3% to $1.1592, higher than $1.1555 seen
late Monday in New York.
The British pound gave up some gains and flattened to $1.2947,
versus $1.2942 Monday.
What's driving the market?
Europe picked up the baton from Asia, where stocks rose, and
notably in China, as the Shanghai Composite bounced back, gaining
2.7%, after hitting fresh multiyear lows Monday. After an upbeat
session on Monday, U.S. stocks extended gains at the open
Tuesday.
Europe markets were shaking off data that showed a decline in
German industrial production
(http://www.marketwatch.com/story/german-industrial-output-drops-in-june-2018-08-07-2485401),
which came on the heels of Monday's economic update that revealed a
plunge in manufacturing orders
(http://www.marketwatch.com/story/german-manufacturing-orders-plunged-in-june-2018-08-06-24854214)from
the largest economy in the European Union. The country's economic
ministry placed some of the blame for that result on trade
tensions.
As trade tensions appeared to dissipate for the moment,
investors remained focused on upbeat earnings, while climbing oil
and material prices also parlayed into gains for Europe.
What are strategists saying?
"Confidence has returned as the S&P 500 moseys its way
toward the January record high, and it remains encouraging to see
stock markets hold their ground despite a drumbeat of trade war
headlines of late," said Chris Beauchamp, chief market analyst at
IG, in a note to clients.
"Earnings season is shaping up very well indeed, which accounts
for why U.S. equities remain comfortably ahead of the likes of
Europe, but a rising tide lifts all boats and will reinforce the
impression that this economic recovery and its associated bull
market has further to run," he added.
Stock movers
Among the most heavily-weighed stocks, French oil major Total SA
(TOT) (TOT) saw its shares climb 1.8%, as BP PLC shares (BP.LN)
(BP.LN) gained nearly 1.7%. Among other materials stocks, BHP
Billiton PLC's shares (BHP.AU) (BLT.LN) jumped 2.2%.
Banks were also climbing across the board, with shares of HSBC
Holdings PLC (HSBA.LN)(HSBA.LN) up 1.1% and Banco Santander SA's
stock (SAN) (SAN.MC) up 1%.
And auto makers also helped out, with Germany's Daimler AG's
stock (DAI.XE) up 1.1% and shares of Sweden's Volvo AB (VOLV-B.SK)
advancing by 1.2%.
(END) Dow Jones Newswires
August 07, 2018 12:29 ET (16:29 GMT)
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