EUROPE MARKETS: German DAX Falls Nearly 2% As Trump Tax-policy Doubts Lift Euro
24 Februar 2017 - 02:56PM
Dow Jones News
By Carla Mozee, MarketWatch
Vivendi chairman under investigation in Italy, reports say
Stocks in Europe dropped by the most in five months Friday,
losing altitude after hitting 14-month highs, as the euro got a
lift from questions about the prospects for U.S. tax policy changes
under President Donald Trump.
The Stoxx Europe 600 stumbled 1.2% to 368.69, on track for the
largest percentage loss since late September, with no sectors
moving higher. Basic materials, oil and gas and financial stocks
led declines. The index on Thursday slipped 0.1%
(http://www.marketwatch.com/story/european-stocks-hunt-for-firm-direction-as-earnings-reports-pile-up-2017-02-23).
Among major indexes, Germany's DAX 30 slid 1.7% to
11,740.84.
The pan-European benchmark was knocked into the red for the
week. It's now poised to lose 0.5% after hitting its strongest
levels since December 2015 earlier in the week.
"European equities are on the back foot into the weekend,
continued profit-taking dragging indices from recent highs. This
stems from more tempered optimism towards Trump tax changes," with
"pudding wanted for proof," by investors, said Mike van Dulken,
head of research at Accendo Markets, in a note.
Skepticism over quick passage of a tax-code overhaul pushed by
Trump has been growing. Trump on Thursday talked about tax policy
as met with 24 manufacturing CEOs at the White House.
Read: Doubts persist about Trump's tax timing
(http://www.marketwatch.com/story/doubts-persist-about-tax-timing-as-trump-meets-with-ceos-2017-02-23)
Europe's losses accelerated as the euro pushed back above $1.06
against the greenback. The euro fetched $1.0610, up from $1.0590
late Thursday in New York. It fell below $1.06 earlier this
week.
"A weaker USD...hinders Europe via reciprocal GBP and EUR
strength," despite election risk for the euro stemming from
France's upcoming presidential election, said van Dulken.
This week, far-right French presidential candidate Marine Le Pen
began widening her lead over her two main competitors
(http://www.marketwatch.com/story/investors-bidding-adieu-to-french-stocks-as-le-pen-gains-in-polls-2017-02-21).
Many investors consider Le Pen a risk to the euro as she's called
for France to leave the shared currency and exit the European
Union.
Van Dulken noted the euro was also under pressure after "less
hawkish" minutes from the Federal Reserve's
(http://www.marketwatch.com/story/fed-minutes-show-support-for-rate-hike-fairly-soon-2017-02-22)
most recent meeting, released this week.
Next week, the markets face potential risks from a speech by
Federal Reserve Chairwoman Janet Yellen and Trump's appearance in a
joint session before Congress.
(http://projects.marketwatch.com/2017/trump-today-signup/)
Movers: Vivendi SA shares dropped 4.1% following reports
(http://variety.com/2017/tv/global/top-vivendi-execs-under-investigation-in-connection-with-mediaset-stock-purchases-1201995687/)
that Italian prosecutors have opened an investigation of Chairman
Vincent Bollore over alleged market manipulation in the media
company's accumulation of a stake in Italian broadcaster Mediaset
(MS.MI). Mediaset shares were down 1.4%.
BASF shares (BAS.XE) fell 3.4% after the German chemicals
heavyweight said it's "cautiously optimistic for 2017". The company
posted a rise in fourth-quarter net profit of 689 million euros
(http://www.marketwatch.com/story/basf-profit-doubles-lifted-by-chemicals-business-2017-02-24)
($728.84 million), above expectations of EUR624 million.
Royal Bank of Scotland PLC (RBS.LN) (RBS.LN) fell 4.4% after the
70% U.K.-owned lender said its annual net loss more than tripled to
6.96 billion pounds
(http://www.marketwatch.com/story/rbs-loss-slumps-to-87-billion-on-conduct-charges-2017-02-24)
($8.73 billion), after it put aside billions of pounds to cover
conduct issues.
Saipem SpA (SPM.MI) dropped 6.3% after Italian oil-services
contractor's fourth-quarter adjusted profit of EUR26 million fell
short of a Thomson Reuters consensus estimate of EUR57 million.
Shares of British Airways parent International Consolidated
Airlines PLC (IAG.LN) (IAG.LN) rose 1.9% after the group posted a
29% rise in net profit and announced a EUR500 million share buyback
(http://www.marketwatch.com/story/iag-profit-rises-29-to-launch-share-buyback-2017-02-24)
($529.7 million), in a sign of improving profitability.
Indexes: France's CAC 40 lost 1.5% at 4,817.17. The U.K.'s FTSE
100 declined 0.9% to 7,204.44
(http://www.marketwatch.com/story/ftse-100-loses-ground-as-rbs-leads-banks-lower-2017-02-24)and
Italy's FTSE MIB fell 1.4% to 18,561.97.
(END) Dow Jones Newswires
February 24, 2017 08:41 ET (13:41 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
Von Feb 2024 bis Mär 2024
FTSE 100
Index Chart
Von Mär 2023 bis Mär 2024