EUROPE MARKETS: European Stocks Snag Modest Gains After French-election Rally
25 April 2017 - 11:47AM
Dow Jones News
By Carla Mozee, MarketWatch
Christian Dior unit to be purchased by LVMH
European stocks nudged higher Tuesday, with attention turned to
earnings reports and a deal involving luxury-fashion company
Christian Dior a day after equities rallied on the first-round
result in France's presidential election.
The Stoxx Europe 600 rose 0.2% to 386.74, but has dipped in and
out of negative territory. Health care, telecom and tech shares
advanced, but basic materials, consumer services and utility stocks
were down.
The benchmark on Monday jumped 2.1%, driven higher on relief
among investors that centrist Emmanuel Macron won the first round
of voting in the France's presidential race. Polling shows Macron
is heavily favored to win his runoff election against far-right
candidate Marine Le Pen on May 7.
Le Pen late Monday said she's temporarily stepping down as the
leader of the National Front party
(http://www.marketwatch.com/story/marine-le-pen-steps-down-as-leader-of-national-front-for-now-2017-04-25),
a move seen as a way to broaden her support heading into the May 7
election.
Check out:4 things investors need to know about France's
presidential runoff
(http://www.marketwatch.com/story/4-things-investors-need-to-know-about-frances-presidential-runoff-2017-04-23)
In Paris, the CAC 40 index on Tuesday was up 0.1% at 5,274, but
had briefly turned lower. The index powered up 4.1% on Monday to
end at 5,268.85, the biggest one-day percentage gain since August
2012 and the highest close since April 2015, according to FactSet
data.
Read:The market is going bonkers over France's election result
-- here's how in 5 wild charts
(http://www.marketwatch.com/story/the-market-is-going-bonkers-over-frances-election-result-heres-how-in-5-wild-charts-2017-04-24)
Barclays on Tuesday reiterated its overweight rating on European
equities.
"We expect fund flows to be the dominant driver of European
stock/sector performance hereon. A reduction in political risk,
coupled with an end to the seven-year stagnation in earnings,
should lead to an acceleration in foreign investor buying of
European equities," Barclays strategist Dennis Jose wrote in a
research note.
Corporate movers: Christian Dior SE shares (CDI.FR) surged 12%
after a deal was struck allowing LVMH Moët Hennessy Louis Vuitton
SE (LVMUY) to buy the Christian Dior's fashion subsidiary,
Christian Dior Couture, for EUR6 billion. Read: Arnaults to take
full control of Christian Dior
(http://www.marketwatch.com/story/arnaults-to-take-full-control-of-christian-dior-2017-04-25)
Ericsson AB (ERIC) fell 2.1% after the wireless-communications
gear maker posted a hefty quarterly net loss of 10.9 billion kronor
($1.24 billion) after booking provisions, write-downs and
restructuring costs.
(http://www.marketwatch.com/story/ericsson-logs-hefty-loss-on-write-downs-2017-04-25)
Whitbread PLC shares (WTB.LN) sank 7.3%, at the bottom of the
Stoxx 600, after the parent company of Costa Coffee and the Premier
Inn hotel chains said it foresees a "tougher consumer environment
than last year,"
(http://www.marketwatch.com/story/whitbread-lifts-dividend-as-full-year-profit-rises-2017-04-25)
even as its businesses have had a good start for the year.
Indexes: Germany's DAX 30 index was up 4 points at 12,459.39. On
Monday, it climbed 3.4% to finish at 12,454.98, a record closing
high.
The U.K.'s FTSE 100 index was up 0.2% at 7,278.57
(http://www.marketwatch.com/story/ftse-100-edges-higher-after-rally-but-mining-stocks-hit-by-downgrades-2017-04-25).
The euro bought $1.0892 compared with $1.0868 late Monday.
Data: More eurozone banks are set to tighten standards on loans
to companies
(http://www.marketwatch.com/story/eurozone-banks-set-to-tighten-credit-terms-ecb-2017-04-25)in
the current quarter than ease them, though most are likely to keep
them unchanged, according to a quarterly survey from the European
Central Bank.
(END) Dow Jones Newswires
April 25, 2017 05:32 ET (09:32 GMT)
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