EUROPE MARKETS: Europe Markets Tick Up Despite Iran Tension
June 21 2019 - 6:27AM
Dow Jones News
By Dave Morris
European markets were slightly positive as geopolitical tensions
could not dent the week's central bank-driven rally.
How did markets perform?
The Stoxx 600 was flat at 386.2, after climbing 1.7%
Thursday.
The U.K.'s FTSE 100 was also flat, trading at 7,426.5. It
increased 1.2% Thursday.
The pound fell 0.4% to $1.2656, after ticking down 0.1%
Thursday.
In Germany, the DAX was 0.3% higher at 12,388.6. On Thursday it
moved up 2%.
France's CAC 40 was up 0.5% to 5,562.9, adding to Thursday's
gain of 2.2%.
Italy's FTSE MIB was also up 0.5% at 21,465.4. It jumped 2.5%
Thursday.
The continuing tensions in the Middle East continued to lift
crude oil benchmarks. The West Texas Intermediate (WTI) front month
contract traded at $57.22/bbl., up 0.3%, and the Brent front month
contract was at $64.82/bbl., up 0.6%.
What's moving the markets?
The New York Times reported that U.S. President Donald Trump
ordered airstrikes on Iran in response to the downing of an
unmanned U.S. drone, but withdrew the order before it could be
executed. The two sides had disagreed over whether the drone was in
international or Iranian airspace when it was shot down. Reuters
reported that
(https://www.reuters.com/article/us-mideast-iran-usa-attacks/trump-warned-iran-via-oman-that-u-s-attack-imminent-called-for-talks-iranian-officials-idUSKCN1TM0AY?il=0),
according to Iranian sources, Trump warned Tehran via Oman that an
attack was imminent and called for talks.
Investors continued to reposition themselves following guidance
from central banks earlier in the week indicating that stimulus
measures were under consideration. Gold brushed against the
$1,400-an-ounce price before retreating
(http://www.marketwatch.com/story/gold-taps-1400-for-the-first-time-since-2013-2019-06-21),
though it is up 3.2% on the week. Meanwhile, analysts suggested
that investor sentiment on the global economy is too
pessimistic.
Deutsche Bank group chief economist David Folkerts-Landau wrote
that his team expected both the U.S. Federal Reserve and the
European Central Bank to loosen financial conditions: "Against this
backdrop of slower, but still positive, growth and coordinated
central bank policy easing, investors will be forced to add
risk."
The race to be the next U.K. Prime Minister narrowed to two as
the Conservative Party leadership contest came down to former
Foreign Secretary Boris Johnson and current Foreign Secretary
Jeremy Hunt. Environment Secretary Michael Gove was eliminated in a
fresh ballot among the party's MPs, losing to Hunt by two votes.
The final result will be determined by a postal vote of the
Conservative membership, with the result expected the week of July
22.
Which stocks are active?
Large oil companies across Europe gained on the rise in the oil
price. Total SA (FP.FR) was 1.8% higher, as was BP PLC (BP.LN). Eni
SpA (ENI.MI) rose 0.6%. Royal Dutch Shell PLC (RDSA.LN) (RDSA.LN)
climbed 1.2%.
Cruise operator Carnival PLC (CCL) sank 2.3% as it slashed
earnings guidance for the full year on Thursday. The company cited
factors including the Cuba travel ban by the U.S. and softness in
bookings by European customers. It also announced that it had
canceled sailings on its Carnival Vista ship due to technical
issues.
(END) Dow Jones Newswires
June 21, 2019 06:12 ET (10:12 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024