EUROPE MARKETS: European Stocks Extend Win Streak To 5 Sessions
09 Gennaio 2018 - 6:39PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
German data beats forecasts, helps maintain positive investing
mood
European stocks closed higher for a fifth session in a row on
Tuesday, as upbeat German economic data and a major strategic move
by French telecom Altice NV cheered investors.
What are markets doing: The Stoxx Europe 600 index gained 0.4%
to end at 400.11, notching a fresh 2 1/2 year high and closing
above 400 for the first time since mid-2015. On Monday, the index
rose 0.3%
(http://www.marketwatch.com/story/european-stocks-stick-to-2-year-highs-despite-german-orders-disappointment-2018-01-08).
In Frankfurt on Tuesday, the DAX 30 index added 0.1% to finish
at 13,385.59, staying around a two-month high.
France's CAC 40 was up 0.7% at 5,523.94 for a 10-year closing
high, while the U.K.'s FTSE 100 index rose 0.5% to end at 7,731.02
for a fresh record close.
The euro traded at $1.1919, lower than $1.1968 late Monday in
New York.
See:European stocks have been a "trendy" trade, but they now
could finally break out
(http://www.marketwatch.com/story/these-stocks-have-been-a-trendy-trade-but-they-now-could-finally-break-out-2018-01-08)
Also check out:These 5 charts are all 'flashing green' for more
U.K. stock records
(http://www.marketwatch.com/story/these-5-charts-are-all-flashing-green-for-more-uk-stock-records-2018-01-08)
What's driving the market: The upbeat sentiment that has lifted
global stocks since the start of the new year still has a grip on
the market. Traders are finding little to derail them from riding
last year's rally higher, focusing on the solid economic outlook
instead.
A batch of German economic data out Tuesday added to that
positive backdrop. German industrial output far outstripped
forecasts with growth of 3.4% in November
(http://www.marketwatch.com/story/german-industrial-output-surprises-with-34-rise-2018-01-09),
suggesting Europe's largest economy may have performed better than
anticipated in 2017.
Fresh figures on German trade also came in stronger than
expected. Germany's statistics office also said the country's
adjusted trade balance stood at 22.3 billion euros ($26.7 billion)
in November.
What strategists are saying
"European markets are trading higher as investors have reacted
to positive German industrial data. The number was simply
astonishing, and it printed the reading of 3.4% when the market was
expecting a number of 1.8%," said Naeem Aslam, chief market analyst
at Think Markets UK, in a note.
"However, the euro-dollar pair is still facing it's inevitable
correction, and this is purely because traders are quick on their
feet to take some profit off the table" after the pair recently hit
$1.2083, he said. "The strong rebound in the dollar may keep the
pressure on the euro for a while, but we are not expecting any
major selloff."
Stock movers: Altice shares (ATC.AE) popped up 11%, after the
company late Monday said it plans to spin off its controlling stake
in its U.S. arm
(http://www.marketwatch.com/story/altice-to-spin-off-controlling-stake-in-us-arm-2018-01-09)
as part of a broader reorganization. Altice will split the company
in two: Altice Europe, which would include its international
holdings, and Altice USA Inc.
"At the core of our strategy is the operational and financial
turnaround in France and Portugal," said Altice in a statement.
Wm. Morrison Supermarkets PLC shares (MRW.LN) climbed 2.4% as
the company said like-for-like sales, excluding fuel, rose 2.8%
during the Christmas period. The company, the first U.K.
supermarket operator to report its trading performance after the
Christmas season, also backed its fiscal 2018 guidance
(http://www.marketwatch.com/story/morrisons-sales-rise-28-at-christmas-2018-01-09).
Among decliners, Steinhoff International Holdings NV fell 5.4%
and French facilities and food services company Sodexo (SW.FR) was
down 2.1%.
Salvatore Ferragamo SA shares (SFER.MI) dropped 1.9% after UBS
downgraded the luxury-goods maker to sell from neutral, "on fears
that the pace of like-for-like recovery in 2018 may
disappoint."
Read:Some European banks might suffer as a result of Republican
tax plan
(http://www.marketwatch.com/story/some-european-banks-might-suffer-as-a-result-of-republican-tax-plan-this-expert-says-2018-01-07)
Economic data: France's trade deficit widened to EUR5.7 billion
in November
(http://www.marketwatch.com/story/german-industrial-output-surprises-with-34-rise-2018-01-09)as
exports of energy products and transport equipment fell
sharply.
In November, unemployment in the eurozone was at 8.7%, Eurostat
said Tuesday. The reading met FactSet consensus expectations, and
marked the lowest level since January 2009.
(END) Dow Jones Newswires
January 09, 2018 12:24 ET (17:24 GMT)
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