EUROPE MARKETS: European Stocks See Bounce, But On Track For Big Weekly Declines
October 12 2018 - 8:41AM
Dow Jones News
By William Watts, MarketWatch
Global equities attempt to take back some lost ground
European equities moved higher Friday, looking to end the week
with a bounce but still on track for big weekly decline.
How are the indexes performing?
The pan-European Stoxx 600 index gave back some initial gains
but remained 0.6% higher at 361.91. London's FTSE 100 stock index
rose 0.8% to 7,0063.79, while the CAC 40 stock index in Paris rose
0.7% to 7,064.05 and the German DAX advanced 0.7% to 11,618.40. All
of the major indexes were on track for big weekly losses, with the
Stoxx eyeing a 3.8% decline.
Italy's FTSE MIB rose 0.7% but was set for a 4.2% weekly fall
amid the global equities rout and worries about a likely budget
clash between the country's government and the European Union.
What's driving the market?
The rebound comes amid a pause in the heavy bout of U.S.-led
selling that many investors tied to a rise in government bond
yields that triggered a selloff in stocks around the world.
Europe's bounce follows a rebound by Asian stocks
(http://www.marketwatch.com/story/stocks-in-japan-and-china-fall-but-losses-at-least-slow-down-2018-10-11),
which also suffered a heavy weekly drubbing. U.S. stock-index
futures were pointing to sharp gains
(http://www.marketwatch.com/story/stocks-set-for-sharp-rebound-but-still-on-track-for-worst-week-since-march-2018-10-12)
for Wall Street.
What are analysts saying?
"Today's rebound appears to offering a brief respite for
investors at what has been an absolute shocker of a week, and while
today's respite is welcome it remains to be seen whether we've seen
the bottom in the short term," said Michael Hewson, chief market
analyst at CMC Markets, in a note. The beginning of U.S. earnings
season "could well offer clues with particular attention likely to
be on company's forward projections for profit and revenue
guidance."
What stocks are moving?
Some of the week's hardest-hit sectors were leading gains
Friday. Luxury-goods stocks, which have suffered amid worries over
China's growth outlook and emerging markets, gained ground.
Shares of Gucci parent Kering (KER.FR) rose 3.6% in Paris, while
LVMH Moet Hennessy Louis (LVMUY) rose 1%. In London, shares of
Burberry Group PLC (BRBY.LN) rose 1.7%.
Oil companies and miners were also gainers, with Total SA (TOT)
up 1.4%, BP (BP.LN) rising 0.9%, and Rio Tinto PLC (RIO.LN) and
Glencore PLC (GLEN.LN) each up 2.3%.
(END) Dow Jones Newswires
October 12, 2018 08:26 ET (12:26 GMT)
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