EUROPE MARKETS: European Stocks Slide As GDP Data, Earnings Stream In
April 29 2016 - 12:32PM
Dow Jones News
By Carla Mozee, MarketWatch
Euro pushes above $1.14
European stocks suffered their worst session in two months
Friday, as investors tackled a raft of economic data and a fresh
batch of corporate results as the week and month drew to a
close.
The Stoxx Europe 600 tumbled 2.1% to 341.51, the lowest close
since April 14, according to FactSet. All sectors were in the
red.
National indexes printed sharp losses, with Germany's DAX 30
sliding 2.7% to 10,038.97, and France's CAC 40 falling 2.8% to
4,428.96, their worst losses since mid-February.
"Markets are still coming to terms with the central bank
announcements of the last couple of days, and the legacy of these
decisions continues to impact through the markets, with U.S. dollar
weakness continuing," said Richard Perry, market analyst at Hantec
Markets, in a note.
The Bank of Japan surprised markets Thursday
(http://www.marketwatch.com/story/out-of-ammunition-analysts-react-to-bojs-surprise-non-move-2016-04-28)
by not issuing a new round of stimulus for the world's
third-largest economy. That sent the yen surging against the dollar
(http://www.marketwatch.com/story/yen-extends-surge-hitting-18-month-high-against-dollar-2016-04-29).
The greenback continued to lose ground against major rivals
Friday, with the euro leaping nearly 1% to $1.1447. A stronger euro
tends to weigh on European exporters as it makes their products
more expensive for holders of other currencies to purchase.
Data: Stocks remained lower after data showed eurozone gross
domestic product grew 0.6% in the first quarter
(http://www.marketwatch.com/story/eurozone-gdp-rises-as-recovery-gathers-pace-2016-04-29),
according to a preliminary reading from Eurostat. That was stronger
than an expected 0.4% rate.
But, separately, inflation in the currency bloc fell to negative
0.2% in April, missing expectations for a flat reading. The data
highlight the challenge of stubbornly low inflation the European
Central Bank has been battling against.
For the week, Stoxx Europe 600 fell 2%, breaking a two-week run
of wins. The index for the month, however, ended up by 1.2%,
marking a second straight monthly gain.
Indexes: Italy's FTSE MIB slid 2% to 18,600.56, while Spain's
IBEX 35 was dragged down 2.6% to 9,025.70.
In London, the FTSE 100 fell 1.3% to 6,241.89
(http://www.marketwatch.com/story/ftse-100-slides-but-hangs-onto-monthly-gains-2016-04-29).
Movers: Restaurant Group PLC (RTN.LN) shares tumbled 27% after
the restaurant chain operator issued a 2016 profit warning
(http://www.marketwatch.com/story/restaurant-group-warns-on-2016-profit-cfo-resigns-2016-04-29-348593)
and said its chief financial officer had resigned.
Sanofi SA (SAN.FR) was yanked 5.4% lower as cancer-treatment
company Medivation Inc. rejected the French drugmaker's $9.3
billion takeover bid
(http://www.marketwatch.com/story/medivation-rejects-sanofis-93-billion-bid-2016-04-29-11485019).
Citi analysts in a note said they "believe it is likely that
[AstraZeneca] is actively exploring the acquisition" of Medivation.
Such a purchase "could provide AZN with the potential for near
immediate core earnings accretion," among other benefits, said
Citi.
Telefónica SA (TEF) shares fell 4.3% after the Spanish telecom
company said first-quarter net profit fell by more than half
(http://www.marketwatch.com/story/telefonica-profit-tumbles-on-currency-woes-2016-04-29).
Meanwhile, Telefónica executives have said it's possible European
Union regulators will halt the sale of its British unit O2
(http://www.marketwatch.com/story/telefonica-prepared-for-regulators-to-halt-o2-sale-2016-04-29)
to rival CK Hutchison Holdings Ltd. (0001.HK) .
International Consolidated Airlines Group SA (IAG.LN) stumbled
4.7% after the parent of British Airways cut its growth plans
(http://www.marketwatch.com/story/iag-cuts-growth-plans-after-brussels-attacks-2016-04-29)
in the wake of the Brussels terror attacks in March.
Credit Suisse AG (CSGN.EB) (CSGN.EB) fell 4.1% as the embattled
Swiss banking group faced shareholders Friday.
(http://www.marketwatch.com/story/credit-suisse-engulfed-in-battle-over-nearly-1-billion-in-losses-2016-04-29)
On the upside, shares of Vestas Wind Systems A/S (VWS.KO) gained
4.5% after the Danish wind-turbine maker's first-quarter profit
fell but beat analyst expectations
(http://www.marketwatch.com/story/vestas-net-profit-falls-38-on-weaker-deliveries-2016-04-29).
More data: Among other figures released Friday, French consumer
prices unexpectedly rose to 0.2% in March
(http://www.marketwatch.com/story/french-consumer-spending-rises-unexpectedly-2016-04-29).
France's gross domestic product grew
(http://www.marketwatch.com/story/french-gdp-beats-forecasts-spain-recovery-steady-2016-04-29)
0.5% in the first quarter, beating expectations for a 0.4%
reading.
German retail sales unexpectedly fell 1.1% in March.
(http://www.marketwatch.com/story/german-retail-sales-surprise-with-11-fall-2016-04-29)
(END) Dow Jones Newswires
April 29, 2016 12:17 ET (16:17 GMT)
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