EUROPE MARKETS: European Stocks Aim For 6th Straight Win, Buoyed By U.S. Jobs Data And Utility Shares
12 Marzo 2018 - 11:48AM
Dow Jones News
By Carla Mozee, MarketWatch
Utility share gains help Germany's DAX to rise
European stocks were on track to add to a winning streak Monday,
extending gains alongside other global markets after the U.S. jobs
report highlighted the health of the world's largest economy.
European markets also got a boost from German utility stocks
after a complex deal within the industry was reached over the
weekend.
How markets are moving
The Stoxx Europe 600 index rose 0.3% to 379.20, with the
utilities group rising the most.
The basic materials group was the only sector in the red. On
Friday, the pan-European index closed 0.4%
(http://www.marketwatch.com/story/german-stocks-fall-as-exports-trump-tariffs-bite-as-european-equities-seesaw-2018-03-09)
higher, and that allowed the benchmark to end last week up by
3.1%.
Germany's DAX 30 index surged 0.7% to 12,435.26, extending last
week's rise of 3.6%, its best week since December 2016, according
to FactSet data.
France's CAC 40 index was up 0.3% at 5,288.80, and Spain's IBEX
35 popped up 0.6% to 9,747.10.
But the U.K.'s FTSE 100 index was searching for firm direction
(http://www.marketwatch.com/story/ftse-100-struggles-to-keep-grip-on-gains-2018-03-12)
around 7,229.72.
The euro bought $1.2327, up from $1.2307 late Friday in New
York.
What is driving the market
European stocks were heading for a sixth consecutive win,
building on the advance logged Friday, when global stock markets
rose after the February nonfarm payrolls report from the U.S.
The report showed the world's largest economy added more jobs
than expected
(http://www.marketwatch.com/story/us-adds-313000-jobs-in-february-in-biggest-gain-in-a-year-and-a-half-2018-03-09),
but wage growth fell shorts of forecasts. That signaled a healthy
U.S. economy but eased fears that wages would add to inflationary
pressures.
Asian stock markets jumped Monday, while U.S. stock futures
(http://www.marketwatch.com/story/us-stock-futures-higher-with-wall-street-set-to-extend-last-weeks-gains-2018-03-12)
were gaining ground.
But mining stocks in Europe struggled after U.S. President
Donald Trump's order last week to impose protectionist tariffs of
25% for steel and 10% for aluminum. European Union officials were
still working on landing an exemption from the levies. Mexico,
Canada and Australia have been exempted.
What strategists are saying
"Global markets continue to advance after Friday's US employment
numbers effectively gave the green light to investors to buy
equities," said Rebecca O'Keeffe, head of investment at Interactive
Investor, in a note.
"Confirmation that there is a resurgence in the number of
Americans joining the labour force, increasing the participation
rate, is a huge boost to U.S. production prospects and growth
without the downside risk of wage inflation. Not too hot, not too
cold; Goldilocks appears to be alive and well," she said.
Stocks in focus
Renewable energy Innogy SE (IGY.XE) rallied 13% after E.On SE
said Sunday it has agreed in principle to acquire RWE AG's 76.8%
stake in Innogy
(http://www.marketwatch.com/story/german-energy-titans-eon-rwe-swap-assets-2018-03-12).
The move would leave E.On focused on energy networks and
consumer-related operations. RWE shares (RWE.XE) leapt 8.8%, and
E.On (EONGY) moved up 5.2%.
GKN (GKN.LN) shares rose 1.6% after Melrose Industries (MRO.LN)
lifted its purchase offer to 8.1 billion pounds
(http://www.marketwatch.com/story/melrose-raises-gkn-offer-to-81-billion-2018-03-12)
($11.2 billion), but said it won't raise the amount again "under
any circumstances." GKN, which has spurned Melrose's previous bids,
said Friday it's merging its driveline business with Dana Inc.
(DAN) in a deal worth $6.1 billion.
At the bottom of the Stoxx 600, Just Eat PLC (JE.LN) shares fell
4.1% after Deutsche Bank downgraded its rating of the online-food
delivery services company to sell from hold.
Among metals producers, ArcelorMittal SA (MT) fell 0.5%, and
steel tubes maker Tenaris SA (TEN.MI) fell 1.1%. Iron ore producers
Rio Tinto PLC (RIO) and BHP Billiton (BLT.LN) each shed 1%, while
Glencore PLC (GLEN.LN) lost 0.7%.
(END) Dow Jones Newswires
March 12, 2018 06:33 ET (10:33 GMT)
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