EUROPE MARKETS: Europe Stocks Struggle, With FTSE 100 Dragged By Pound Strength
September 11 2018 - 4:44AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Amer Sports Oyj surges on deal talk
European stocks struggled for traction on Tuesday, with weakness
notable for the FTSE 100 as Brexit-deal hopes continued to push the
British pound higher.
What are markets doing?
The Stoxx Europe 600 was flat at 375.66, after a gain of 0.4% on
Monday
(http://www.marketwatch.com/story/stoxx-europe-600-edges-higher-shaking-off-swedens-election-results-2018-09-10).
The index dropped 2.2% last week, and is down nearly 3.5%
year-to-date.
Germany's DAX 30 flattened to 11,990.34, while France's CAC 40
added 0.1% to 5,275.13. The U.K.'s FTSE 100 was down 0.4% to
7,251.52.
The euro rose to $1.16384 from $1.1594 late Monday in New York,
while the pound bought $1.3066, up from $1.3025.
What is driving the market?
The pound shot higher Monday (ground) on hopes that a Brexit
deal could be agreed to within six to eight weeks, with that action
continuing into Tuesday's session. A stronger pound can weigh on
the FTSE 100, as the index's multinational companies generate most
of their sales in other currencies.
This Brexit timeline estimate came from European Union chief
negotiator Michel Barnier at a conference in Slovenia and helped
soothe investor fears that the U.K. could part ways with Europe's
big trade bloc in March 2019 without an agreement in place. But
Barnier also said several issues still needed to be worked out.
European stocks generally struggled as investors continued to
look for catalysts that could drive the market higher. On the trade
front, EU and U.S. negotiators met Monday
(http://www.marketwatch.com/story/us-eu-negotiators-cite-progress-in-latest-discussions-over-trade-2018-09-11)
to talk over a pact that would avoid a trans-Atlantic spat. While
no major breakthrough was seen, U.S. Trade Representative Robert
Lighthizer and European Trade Commissioner Cecilia Malmström said
they would meet up again by the end of September and begin
hammering out a deal in the coming months.
U.S. stock futures indicated a flat start for Wall Street stocks
as well, after the S&P 500 and Nasdaq Composite indexes snapped
a four-day losing streak
(http://www.marketwatch.com/story/us-stocks-set-to-bounce-higher-after-last-weeks-drop-2018-09-10)on
Monday as tech stocks halted a slide.
Stock movers
Amer Sports Oyj (AMEAS.HE) was the biggest gainer in the Stoxx
Europe 600, jumping nearly 12% after the sporting goods company
said it has received a nonbinding preliminary indication of
interest
(https://www.nasdaq.com/press-release/amer-sports-confirms-receipt-of-an-indication-of-interest-from-a-consortium-including-anta-sports-20180911-00083)
from Hong Kong-based Anta Sports Products Limited (2020.HK) and
Asian private-equity firm FountainVest Partners.
Shares in Ashtead Group PLC (AHT) jumped nearly 3% after the
industrial equipment rental company said it would expand its
share-buyback program
(http://www.marketwatch.com/story/ashtead-expands-buybacks-after-profit-rise-2018-09-11)
after posting a 20% gain for first-quarter pretax profit.
ArcelorMittal SA (MT) slipped 3%. The steel manufacturer
reportedly lifted its offer for India's Essar Steel India Ltd
(http://www.marketwatch.com/story/arcelormittal-lifts-essar-bid-to-58b-report-2018-09-11).
to about 420 billion rupees ($5.8 billion), according to Bloomberg,
which cited sources.
(END) Dow Jones Newswires
September 11, 2018 04:29 ET (08:29 GMT)
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