EUROPE MARKETS: European Stocks Dragged South By Losses For Oil And Auto Companies
January 11 2019 - 9:19AM
Dow Jones News
By Emily Horton
Pound strength weighs on FTSE 100
European markets slipped into the red on Friday, weighed by
negative headlines in the global auto sector and losses for oil
majors.
What did markets do?
Surrendering an earlier lead, the Stoxx Europe 600 fell 0.2% to
348.27 after finishing up 0.3% on Thursday. The index has gained
four of the past five trading days, and is poised to end the week
with a rise of over 1%.
Dogged by pound strength, the U.K.'s FTSE 100 went from a 0.8%
gain to a loss of 0.3%, at 6,925.16. The pound surged to $1.2812
from $1.2749 late Thursday in New York.
The Germany's Dax 30 and France's CAC 40 each lost around 0.6%
and Italy's FTSE MIB Italy dropped 0.4%.
The euro climbed to $1.1520 from $1.1500.
What is driving the markets?
Sterling spiked
(http://www.marketwatch.com/story/british-pound-climbs-as-likelihood-of-brexit-delay-rises-2019-01-11)
on a report in the Evening Standard that said Prime Minister
Theresa May's cabinet members saw the likelihood of a Brexit delay
rising. The U.K. Parliament is slated to vote on her Brexit deal on
Jan. 15, but market participants aren't sure she can shore up
enough votes. A stronger pound can weigh on the FTSE 100, as the
index's multinational companies generate most of their sales in
other currencies.
Read:British pound climbs as likelihood of Brexit delay rises
(http://www.marketwatch.com/story/british-pound-climbs-as-likelihood-of-brexit-delay-rises-2019-01-11)
The auto sector was under pressure after
(http://www.marketwatch.com/story/us-gains-312000-jobs-in-final-month-of-2018-soaring-above-wall-street-forecast-2019-01-04)Ford
Motor Co. (F) launched an overhaul of its European business on
Thursday
(http://www.marketwatch.com/story/ford-unveils-major-european-restructuring-2019-01-10).
It will include thousands of job cuts, plant closures and the
cancellation of low-profit models amid poor performance at the
global car maker, The Wall Street Journal reports
(https://www.wsj.com/articles/ford-announces-major-european-restructuring-11547117814).
In the U.S., President Donald Trump is digging his heels in over
the partial government shutdown. White House officials are divided
over whether the president should declare a national state of
emergency to secure funding for his U.S./ Mexico border wall, the
Journal reports
(https://www.wsj.com/articles/white-house-looking-into-diverting-army-corps-funds-to-build-wall-11547161664).
Despite the shutdown, trade talks between China and the U.S. are
still progressing, with China's top trade officials expected to
visit the U.S. later this month
(http://www.marketwatch.com/story/chinas-top-trade-official-expected-to-visit-us-for-trade-talks-mnuchin-says-2019-01-10)for
more negotiations.
What stocks are active?
Among heavily weighted auto stocks, Daimler AG (DAI.XE) fell 2%
and Volkswagen (VOW.XE) tumbled over 4%.
Major oil companies dragged on the main Stoxx index as crude
prices turned lower
(http://www.marketwatch.com/story/oil-prices-lifted-for-10th-day-as-dollar-softens-2019-01-11).
Royal Dutch Shell PLC A (RDSA.LN) (RDSA.LN) fell 0.5% and BP PLC
(BP.LN) (BP.LN) dropped 0.6%.
Health-care stocks logged losses, with UDG Healthcare PLC
(UDG.LN) off 6% and Eurofins Scientific S.E. (ERF.FR) down by
3%.
U.K. home builders were in the black after upbeat results from
(http://www.marketwatch.com/story/taylor-wimpey-expects-one-off-charge-over-pensions-2019-01-09)with
Taylor Wimpey PLC (TW.LN) on Thursday. Taylor Wimpey and Persimmon
PLC (PSN.LN) shares rose 5% each.
Cie. Financière Richemont SA (CFR.EB) gained 2% after reporting
revenue grew by 25% in the third quarter
(http://www.marketwatch.com/story/richemont-revenue-up-despite-yellow-vest-headwind-2019-01-11),
which was in line with expectations despite headwinds in some of
its markets.
(http://www.marketwatch.com/story/richemont-revenue-up-despite-yellow-vest-headwind-2019-01-11)
(END) Dow Jones Newswires
January 11, 2019 09:04 ET (14:04 GMT)
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