EUROPE MARKETS: Michelin Helps Drive Gains For Europe As Investors Eye Trade Deal, U.S. Politics
12 Febbraio 2019 - 2:37PM
Dow Jones News
By Emily Horton
Michelin soars on upbeat results, outlook
European indexes were positive on Tuesday, with auto-part
companies gaining after upbeat results from Michelin and investors
optimistic about a potential trade deal and hopes the U.S. can
avoid another damaging government shutdown.
How are markets performing?
The Stoxx Europe 600 rose 0.4% to 362.66 in Tuesday, after the
index finished up 0.9% on Monday.
Germany's DAX 30 led the regions gainers, adding 1.1% to
11,137.18. As well, Italy's FTSE MIB climbed by 1.1%, while
France's CAC 40 rose by 0.9% to 5,060.35. The Spanish IBEX 35 index
rose by 0.7% to 9000.90.
The FTSE 100 was flat at 7,132.45.
The euro fell slightly to $1.1291 on Tuesday, from $1.1278 late
Monday in New York, while the pound dipped to $1.2869 from
$1.1278.
What's driving the markets?
In the U.S., Democratic and Republican lawmakers said late
Monday that a deal had been reached to avert another damaging
government shutdown, though U.S. President Donald Trump will still
need to put his final stamp of approval on the border-wall funding
agreement
(http://www.marketwatch.com/story/lawmakers-reach-border-security-deal-that-would-avert-shutdown-2019-02-11).
Investors also remain glued to ongoing trade talks in China,
entering a second day. Trump senior adviser Kellyanne Conway told
Fox News & Friends that Trump and China President Xi Jinping
seem nearer a trade deal
(https://www.newsmax.com/newsfront/kellyanne-conway-trade/2019/02/11/id/902146/).
Treasury Secretary Steven Mnuchin and U.S. Trade Representative
Robert Lighthizer are due to arrive Thursday for more high-level
discussions as a March 2 agreement deadline between the two
countries looms.
In the U.K., Prime Minister Theresa May will plead with
parliament to give her two more weeks to improve her Brexit deal
(http://www.marketwatch.com/story/brexit-brief-theresa-may-plays-for-time-with-brexit-rebels-2019-02-12).
The PM is expected to ask U.K. politicians to not to hinder her
efforts to win concessions from Brussels while talks are
ongoing.
What shares were active?
Shares of Compagnie Generale des Etablissements Michelin (ML.FR)
climbed 11% Tuesday, boosting rivals as investors cheered the
French tire maker's results
(http://www.marketwatch.com/story/michelin-shares-jump-on-upbeat-results-outlook-2019-02-12)
and outlook for the year. Continental AG (CON.XE) and Pirelli &
C. SpA (PIRC.MI) shares rose 4% and nearly 5% higher,
respectively.
Other autos-related stocks also rose, with Daimler AG (DAI.XE)
up 2% and Volkswagen AG (VOW.XE) adding 3.6%.
Gucci owner Kering (KER.FR) said its net profit had doubled in
2018 and raised its dividend for the year
(http://www.marketwatch.com/story/kering-profit-more-than-doubles-lifts-dividend-2019-02-12)
on Tuesday, but shares dropped by 2%. ING analysts said in a note
to clients that the upbeat results had largely been priced into the
stock and the company still had "little performance potential."
But Kering's results reassured other luxury brands that the
Chinese still have an appetite for luxury goods despite the
country's economic slowdown. Moet Hennessy Louis Vuitton SE (LVMUY)
gained 2% and Burberry Group PLC (BRBY.LN) added 0.7%.
Thyssenkrupp AG (TKA.XE) dropped by 2% after the company
reported a profit gain
(http://www.marketwatch.com/story/thyssenkrupp-profit-up-says-uncertainties-growing-2019-02-12),
but cited risks from economic and political uncertainties.
TUI AG lost 3% after the travel company said net losses for the
first quarter widened
(http://www.marketwatch.com/story/tui-loss-widens-but-lower-margins-for-bookings-2019-02-12)due
to the unusually long and hot summer in Northern Europe.
French car maker Renault SA (RNO.FR) lost 0.4% after it
confirmed that former chief executive Carlos Ghosn will still holds
other positions with the group
(https://www.marketwatch.com/story/renault-carlos-ghosn-still-).
Metro AG (B4B.XE) climbed by 3%, after the German retailer
announced upbeat sales
(http://www.marketwatch.com/story/metro-profit-off-13-but-same-store-sales-upbeat-2019-02-12).
(END) Dow Jones Newswires
February 12, 2019 08:22 ET (13:22 GMT)
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