EUROPE MARKETS: Losses In Italian Banks, Swiss Chip Maker Send European To Lower Close
25 Oktober 2016 - 6:47PM
Dow Jones News
By Victor Reklaitis, MarketWatch
German business sentiment rises, but that is not enough
European stocks lost ground Tuesday as big decliners such as
Italian banks and Swiss chip maker AMS AG offset an encouraging
reading on German business sentiment.
The Stoxx Europe 600 fell 0.4% to close at 343.07, as earlier
gains didn't stick. The pan-European gauge had traded as high as
345.65 on Tuesday, after Germany's Ifo institute said the business
mood in Europe's largest economy rose to a 2.5-year peak.
Big decliners: AMS (AMS.EB) plunged 13% in the wake of its
third-quarter report
(http://ams.com/eng/Press-Center/Press-Releases/Ad-hoc/Monday-24-October-2016).
AMS said it sees "muted" growth for its business in the fourth
quarter due to "a negative development at a specific customer."
Italian banks also were among the big losers, as Banca Monte dei
Paschi di Siena SpA said it would cut 2,600 jobs
(http://www.marketwatch.com/story/monte-dei-paschi-to-slash-jobs-sell-units-2016-10-25),
shutter 500 branches and shed businesses as part of a make-or-break
effort to persuade skeptical investors to buy into a big capital
increase.
Outside the Stoxx 600, BMPS (BMPS.MI) fell 15%. Within the
index, Unione di Banche Italiane SpA (UBI.MI) shed 3.7%, and Banca
Popolare dell'Emilia Romagna (BPE.MI) lost 4.2%.
Other movers: On the upside, Luxottica Group SpA's stock
(LUX.MI) closed up 4.4% after the Italian eyewear giant said
third-quarter sales grew 3.2%
(http://www.marketwatch.com/story/luxottica-quarterly-us-wholesale-sales-decline-2016-10-25).
Two Finnish paper makers were the Stoxx 600's biggest winners.
UPM-Kymmene Oyj (UPM1V.HE) and Stora Enso Oyj (STERV.HE) gained 11%
and 6.9%, respectively, after producing stronger-than-anticipated
quarterly earnings
(http://in.reuters.com/article/upm-kymmene-oyj-results-idINL8N1CV1JW).
Meanwhile, mining stocks were among the notable advancers,
moving up as prices for gold and most other metals rose. Gold
futures gained 0.8% to $1,273.80 an ounce.
Also helping the sector, Anglo American PLC (AAL.LN) posted
higher third-quarter output
(http://www.marketwatch.com/story/anglo-american-output-higher-except-for-copper-2016-10-25)across
all divisions except copper. Anglo tacked on 4.6%, Antofagasta PLC
(ANTO.LN) rose 3%, Rio Tinto PLC (RIO) (RIO) (RIO) gained 4.5%.
Read:Why mining stocks are due for a 20% drop
(http://www.marketwatch.com/story/why-mining-stocks-are-due-for-a-20-drop-2016-10-21)
(http://www.marketwatch.com/story/why-mining-stocks-are-due-for-a-20-drop-2016-10-21)Shares
of wind turbine manufacturer Gamesa Corporacion Tecnologica SA
(GAM.MC) added 0.3% after the International Energy Agency
significantly lifted its forecast for five-year growth in renewable
energy
(http://www.marketwatch.com/story/turning-point-in-green-energy-prompts-iea-to-drastically-raise-5-year-outlook-2016-10-25).
German mood: The Ifo institute's business climate index
increased to 110.5 points
(http://www.marketwatch.com/story/german-business-mood-hits-25-year-high-in-october-2016-10-25)
in October from 109.5 in September, reaching its highest level
since April 2014.
"The German Ifo data has provided further evidence that the
economic engine of the eurozone is picking up steam," said Naeem
Aslam, chief market analyst at ThinkMarkets, in a note.
Indexes: Germany's DAX 30 closed down less than 0.1% at
10,757.31, while France's CAC 40 edged down 0.3% to 4,540.84.
Bucking the negative trend, the U.K's FTSE 100
(http://www.marketwatch.com/story/ftse-100-gains-as-miners-and-st-jamess-place-jump-2016-10-25)
tacked on 0.5% to 7,017.64, helped by the miners' gains.
The euro was changing hands at $1.0887, up from $1.0875 late
Monday in New York.
(END) Dow Jones Newswires
October 25, 2016 12:32 ET (16:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
FTSE 100
Index Chart
Von Mär 2024 bis Apr 2024
FTSE 100
Index Chart
Von Apr 2023 bis Apr 2024