EUROPE MARKETS: European Stocks Follow Wall Street Into The Red, As Burberry Falls Short
17 Gennaio 2018 - 12:04PM
Dow Jones News
By Carla Mozee, MarketWatch
Skanska to lay off thousands; Burberry sales fall
European stocks came under pressure 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 0.2% to
397.29, with the consumer services and telecom sectors losing the
most. But the tech, utility and basic materials groups were higher.
On Monday, the pan-European benchmark rose 0.1%.
Germany's DAX 30 index was down 0.2% at 13,219.99, and France's
CAC 40 gave up 0.2% to reach 5,498.62. Spain's IBEX 24 fell 0.5% to
10,466.20.
The U.K.'s FTSE 100 index dropped 0.3% to 7,733.06, heading
toward a third straight loss.
The euro bought $1.2236, 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. The S&P 500 and the Nasdaq Composite also pulled back
from record highs.
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: One of the biggest losers on the Stoxx 600,
Burberry (BRBY.LN) shares slumped 6.8% after the luxury-goods 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 5.8% after the company 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.
Pearson (PSON.LN) shares slid 6.4% after the 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
range.
UBM PLC (UBM.LN) jumped 13% 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 7%.
Economic data: The final reading on eurozone inflation in
December came in at 1.4%, meeting expectations.
(END) Dow Jones Newswires
January 17, 2018 05:49 ET (10:49 GMT)
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