EUROPE MARKETS: Europe Stocks Slump On Growth Fears; Thomas Cook Rivals Surge
September 23 2019 - 9:14AM
Dow Jones News
By Steve Goldstein, MarketWatch
European benchmarks slumped Monday, amid concerns over the
eurozone's faltering growth prospects, while shares of those
companies that compete with tourism outfit Thomas Cook surged on
the heels of its collapse.
The Stoxx Europe 600 index fell 0.8% to 389.75.
The German DAX tumbled 1.07% to 12334.57, the French CAC 40 fell
by about 1% to 5633.46 and the U.K. FTSE 100 dropped 0.2% to
7328.11.
Weighing on investors' mood Monday were data showing that
manufacturing sentiment in the eurozone, purchasing managers index,
fell to an 83-month low of 45.6 in September, from 47 in the prior
month. Economists polled by FactSet expected a 47.3 reading, with
any reading below 50 indicating worsening conditions.
The highlight of that report
(http://www.marketwatch.com/story/eurozone-manufacturing-pmi-drops-in-september-to-worst-level-in-nearly-7-years-2019-09-23)was
German manufacturing PMIs, which fell to 41.4 in September from
43.5, marking the worst reading in more than a decade.
Banks including BBVA (BBVA.MC) and Deutsche Bank (DBK.XE) saw
their shares stumble in afternoon trade.
Commerzbank (CBK.XE) fell nearly 7% as the bank released a draft
of its new strategic initiative. The program calls for total
investments of around 1.6 billion euros, a cut of 4,300 full-time
jobs, a reduction of its branch network by around 200, and the sale
of a majority stake in Poland's mBank (MBK.WA).
"While cost control has improved recently, the bank is still
somewhat slower in reducing its costs than planned in the old
strategy plan Commerzbank 4.0 in our view," said Deutsche Bank
analysts.
Travel operator TUI AG shares jumped 6.9% and budget airline
easyJet's stock (EZJ.LN) gained 3.4% as Thomas Cook Group filed for
liquidation.
London Markets:Thomas Cook's liquidation wipes out travel
company worth GBP1.85 billion just 18 months ago
(http://www.marketwatch.com/story/thomas-cooks-liquidation-wipes-out-travel-company-worth-185-billion-just-18-months-ago-2019-09-23)
Also read:These brilliant posters tell the tale of Thomas Cook's
storied 178-year history
(http://www.marketwatch.com/story/these-brilliant-posters-tell-the-tale-of-thomas-cooks-storied-178-year-history-2019-09-23)
(END) Dow Jones Newswires
September 23, 2019 08:59 ET (12:59 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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