EUROPE MARKETS: European Stocks Close With Losses, Weighed Down By Dives For Burberry, Skanska
17 Gennaio 2018 - 06:38PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Skanska to lay off thousands; Burberry sales fall
European stocks finished in the red Wednesday, as a round of
corporate financial updates failed to lift an investing mood dimmed
by losses on U.S. stock markets.
A disappointing sales report from fashion house Burberry Group
PLC and a warning of layoffs at Swedish construction company
Skanska AB dragged on shares of those companies.
How markets are moving: The Stoxx Europe 600 index shed 0.1% to
close at 397.97. On Tuesday, the pan-European benchmark rose 0.1%
(http://www.marketwatch.com/story/european-stocks-head-higher-as-euro-pulls-back-2018-01-16).
Germany's DAX 30 index was down 0.5% at 13,183.96, and France's
CAC 40 gave up 0.4% to finish at 5,493.99.
The U.K.'s FTSE 100 index finished down 0.4% at 7,725.43.
The euro bought $1.2235, down from $1.2259 late Tuesday in New
York.
What's driving markets: The lower start for European equities
followed losses on Wall Street on Tuesday. The Dow Jones Industrial
Average suffered a big reversal
(http://www.marketwatch.com/story/dow-on-track-for-200-point-jump-putting-26000-within-reach-2018-01-16),
ending lower after breaking above the 26,00 level for the first
time, though it was rallying Wednesday.
But overall, European and U.S. stocks have had a strong start to
2018 on expectations of stronger earnings from companies and
continued improvement in global economic growth.
Financial updates streamed in as the new earnings season picked
up pace, and traders were swift in punishing earnings releases that
didn't meet the mark. Those losses helped drag on the market.
What strategists are saying: "Whilst there was no obvious cause
for the selloff, there is some suggestion that rising concerns over
the U.S. shutdown is weighing on investor's minds," said Simon
Revington, an analyst at City Index.
"Congress has until Friday to pass a new spending bill, or else
face a U.S. government shut down; immigration discussions have been
complicating efforts to reach a deal on government spending,"
Revington said in his note.
Stock movers: Suffering the Stoxx 600's biggest loss, Burberry
(BRBY.LN) slumped 9.3% after the luxury-goods seller said
third-quarter retail sales fell 2%
(http://www.marketwatch.com/story/burberry-retail-sales-slip-backs-2018-guidance-2018-01-17).
Skanska AB (SKA-B.SK) dropped 8.1% after the Swedish
construction heavyweight said it plans to take a total
fourth-quarter charge of 1.1 billion Swedish krona as part of
restructuring efforts to boost profitability. Plans including
laying off 3,000 workers
(http://www.marketwatch.com/story/skanska-to-lay-off-3000-workers-take-restructuring-charge-in-moves-to-boost-profit-2018-01-17).
Pearson (PSON.LN) slid 4.7% after the publishing company said
sales for U.S. higher education course materials fell 3%
(http://www.marketwatch.com/story/pearson-upbeat-on-2017-results-no-change-to-tax-2018-01-17)
in the first nine months of 2017, at the lower end of its
guidance.
UBM PLC (UBM.LN) jumped 12% on news the events company was
advancing in talks for a takeover by Informa, with a view to a
merger
(http://www.marketwatch.com/story/ubm-informa-in-talks-for-53-bln-merger-2018-01-17).
Informa shares fell 5.7%.
Economic data: The final reading on eurozone inflation in
December came in at 1.4%, meeting expectations.
New car sales in the European Union fell in December, with
demand falling in all major EU markets
(http://www.marketwatch.com/story/eu-new-car-registrations-drop-in-december-2018-01-17)except
Spain, according to data published Wednesday
(END) Dow Jones Newswires
January 17, 2018 12:23 ET (17:23 GMT)
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