EUROPE MARKETS: European Stocks Stage Recovery In Wake Of German Political Uncertainty
20 Novembre 2017 - 12:11PM
Dow Jones News
By Carla Mozee, MarketWatch
Germany's FDP reportedly may support a minority government
European equities turned higher Monday, with German equities
recovering following the collapse of talks to form a coalition
government for the eurozone's largest economy.
What markets are doing: In Frankfurt, the DAX 30 index turned up
0.2% to 13,020.35, a turnaround from an losing as much as 0.5%.
France's CAC 40 was up 0.3% to 5,334.18 and the U.K.'s FTSE 100
edged up 0.1% to 7,384.78.
Spain's IBEX 35 turned up 0.5% to 10,058.50, and the Stoxx
Europe 600 reversed course and rose 0.4% to 385.18. The tech and
financial sectors were down the most but health care and telecom
stocks led advancing groups.
The euro bought $1.1791, coming off an intraday low of $1.1723.
The shared currency late Friday in New York fetched $1.1793.
Against the pound, the euro traded hands at GBP0.8887 versus
GBP0.8923 on Friday.
What's moving markets: Stocks started in the red after talks to
form a "Jamaica" governing coalition of parties in Germany broke
down. On Sunday, the pro-business Free Democratic Party ended talks
about forming a coalition government
(http://www.marketwatch.com/story/euro-plummets-as-uncertainty-in-germany-rattles-markets-2017-11-19)
with Merkel's Christian Democratic Union and the center-left
Greens.
That puts Merkel's fourth term as chancellor in doubt, as well
as raising the prospect of a minority government and perhaps
eventually a new general election if the situation can't be
resolved.
But German equities started to turn higher and the euro came off
session lows against the U.S. dollar following a Monday report that
the FDP said it would support a minority government. German
President Frank-Walter Steinmeier will make a statement at 2:30
p.m. local time, or 9:30 a.m. Eastern Time, according to
Bloomberg.
What strategists are saying: "European equity markets have
picked up where they left off last week, heading lower after the
FDP walked out of German coalition talks," said Rebecca O'Keeffe,
head of investing at Interactive Investor, in a note.
"Chancellor Merkel is also one of the few European politicians
who has demonstrated she may be prepared to compromise with
Britain, rather than run the risk that [U.K.] Prime Minister May is
replaced by a hardline Brexiteer. With almost unsurpassed political
experience, markets will want Germany to find a quick solution,
preferably one that leaves Mrs. Merkel in situ," she said.
Stock movers: Altice NV (ATC.AE) shares jumped 9.3% after the
French telecommunications group said it has no plans to raise
capital
(http://www.marketwatch.com/story/altice-says-it-has-no-plans-to-raise-capital-2017-11-20-14855247).
The company recently announced a management shakeup
(http://www.marketwatch.com/story/altice-replaces-ceo-combes-in-exec-shakeup-2017-11-10)in
the wake of disappointing third-quarter results and a slide in its
share price.
RWE AG (RWE.XE) rose 2.2%, topping the DAX 30, following a
Reuters report over the weekend that the German utility is
considering ways to cut its stake of EUR16.8 billion ($19.8
billion) in its Innogy retail business
(https://www.reuters.com/article/innogy-ma-enel/rwe-rallies-on-hopes-for-innogy-deal-less-stringent-german-climate-policy-idUSL8N1NQ1Z4).
One option includes doing a deal with Italy's Enel (ENEL.MI) , the
report said.
NEX Group PLC (NXG.LN) was pulled 2.8% lower as the electronic
financial trading company cut its interim dividend
(http://www.marketwatch.com/story/nex-group-first-half-profit-falls-cuts-dividend-2017-11-20)
and said profit fell in the first half of fiscal 2018.
Mediclinic International PLC (MDC.LN) fell 3.3% after the
private hospital company said it's ditching plans to make an offer
(http://www.marketwatch.com/story/mediclinic-no-longer-plans-to-make-offer-for-spire-2017-11-20)
to buy Spire Healthcare Group PLC (SPI.LN) . Spire shares fell 5.3%
on the mid-cap FTSE 250 index.
(END) Dow Jones Newswires
November 20, 2017 05:56 ET (10:56 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Grafico Indice FTSE 100
Da Mar 2024 a Apr 2024
Grafico Indice FTSE 100
Da Apr 2023 a Apr 2024