EUROPE MARKETS: European Stocks 'burst Into Life,' With German DAX Aiming For 2-week High
21 Novembre 2017 - 5:27PM
Dow Jones News
By Carla Mozee, MarketWatch
EasyJet shares jump by the most in nearly 3 years
European stocks popped higher Tuesday, aided by gains for
airline easyJet PLC and car maker Volkswagen AG and by investors
appearing, for now, to set aside concerns about the possibility of
a new election in Germany.
Equity markets in the region rose as major U.S. stock gauges
rallied
(http://www.marketwatch.com/story/nasdaq-shapes-up-for-another-record-with-retail-earnings-on-deck-2017-11-21),
with a leap in technology shares pushing the Nasdaq Composite Index
to an all-time high.
What markets are doing: The Stoxx Europe 600 rose 0.5% to 388.32
after darting between small gains and losses earlier in the
session. Only the telecom sector lost ground. The regional
benchmark on Monday tacked on 0.7%
(http://www.marketwatch.com/story/european-stocks-stage-recovery-in-wake-of-german-political-uncertainty-2017-11-20)
and logged its highest close since Nov. 10, according to FactSet
data.
In Frankfurt, the DAX 30 index pushed through earlier losses and
leapt 1% to 13,195.84. At the same tie, Italy's FTSE MIB surged
0.9% to 22,390.60
France's CAC 40 picked up 0.6% to 5,374.03, but Spain's IBEX 35
turned lower and fell 0.2% to 10,008.90.
The U.K.'s FTSE 100 was up 0.4% to 7,416.30.
The euro bought $1.1735, barely budging from $1.1733 late Monday
in New York. Against the pound, the euro traded hands at GBP0.8860
versus GBP0.8866 on Monday.
What's moving markets: The prospect of a snap election in
Germany was heightened after Chancellor Angela Merkel late Monday
said she would prefer voters go back to the ballot box
(http://www.marketwatch.com/story/germanys-merkel-would-prefer-new-election-over-minority-government-2017-11-20)
over a minority government. At the weekend, negotiations between
her CDU party and two others to form a "Jamaica" coalition
government broke down
(http://www.marketwatch.com/story/the-euro-still-can-break-higher-analysts-react-to-germanys-political-uncertainty-2017-11-20).
But broadly lower moves for the euro against its major rivals
appeared to aid shares of European exporters, as a stronger value
for the shared currency can make their products more expensive for
overseas clients to purchase.
What strategists are saying: "Despite plenty for investors to be
down about -- including, but not limited to, the political
instability in Germany, what could be a damp squib [U.K.] Autumn
Budget tomorrow and, well, Brexit -- the markets burst into life
this Tuesday afternoon," said Connor Campbell, financial analyst at
Spreadex, in a note.
"It seems investors have faith that Germany will find a way to
move past its current uncertainty without the kind of
performance-damaging aftermath seen by some of its peers (looking
at you, Spain and the U.K.)," he added.
Stock movers: EasyJet (EZJ.LN) shares bounced up 6%, heading for
their biggest rise since January 2015. The move came after the
low-cost airline said passenger traffic rose 10% in fiscal 2017
(http://www.marketwatch.com/story/easyjet-net-profit-down-24-passenger-traffic-up-2017-11-21),
but that net profit fell 24%. The stock was on track for its
biggest daily gain in four years.
Aggreko PLC shares (AGK.LN) slid 9.7%. The supplier of
generators and chillers said quarterly revenue at its power
solutions utility division fell 11%, stemming from its business in
Argentina. The company maintained its full-year guidance.
Shares of Volkswagen (VOW.XE) leapt 2.7% to trade near the top
of the Stoxx 600. The gain added to Monday's rise of 4.2%, logged
after the car maker raised its mid-term forecast for sales and
profit.
Babcock International Group PLC (BAB.LN) shares dropped 5.1%.
The defense contractor said a U.K. government review may delay the
introduction of large programs to upgrade some land-based military
equipment.
Economic data: The U.K. government borrowed more in October than
it did a year ago
(http://www.marketwatch.com/story/uk-public-borrowing-increases-in-october-2017-11-21)
as price growth pushed up the cost of servicing inflation-linked
debt, according to the Office for National Statistics. Britain's
borrowing increased by GBP500 million to GBP8 billion.
The figures arrived before the U.K. government presents its
budget on Wednesday, expected to be presented by Chancellor Philip
Hammond at around 12:30 p.m. London time, or 7:30 a.m. Eastern
Time.
(END) Dow Jones Newswires
November 21, 2017 11:12 ET (16:12 GMT)
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