EUROPE MARKETS: European Stocks Drop For Second Day As Euro Rises After Inflation Data
28 April 2017 - 6:31PM
Dow Jones News
By Sara Sjolin and Carla Mozee, MarketWatch
UBS jumps after earnings
European stocks posted mild losses Friday, with investors
pushing up both the euro and the pound against the dollar following
top-tier economic data for the eurozone and the U.K.
The Stoxx Europe 600 index fell 0.2% to close at 387.09, logging
a second straight day in negative territory. The benchmark on
Thursday broke a six-session win streak
(http://www.marketwatch.com/story/european-stocks-snap-winning-streak-with-ebc-on-deck-2017-04-27)
after the European Central Bank offered no surprises at its policy
meeting, while a drop for Deutsche Bank AG (DBK.XE) (DBK.XE) also
weighed.
Most European stock markets are closed for trade on Monday for
May Day and the U.K.'s early May bank holiday. Only the Danish
market is open for trade, according to index provider Stoxx
(https://www.stoxx.com/document/Resources/Methodology/Dissemination/Realtime_Data/dissemination_calendar_2017.pdf).
Euro, pound advance: The euro pushed to an intraday high of
$1.0949 after the preliminary eurozone inflation report for April,
with investors eyeing the prospect that stronger inflation may
compel the European Central Bank to raise interest rates. The
shared currency bought $1.0874 late Thursday in New York.
Core inflation excluding energy and food rose to 1.2% in April,
according to Eurostat. That's the highest since March 2013, FactSet
data showed, and surpassed the consensus estimate of 1%. Headline
inflation rose to 1.9%, above the 1.8% estimate.
ECB President Mario Draghi in his press conference on Thursday
said there was still no "convincing upward trend" in underlying
inflation in the eurozone, reiterating that it's too soon to scale
back the bank's aggressive stimulus program. The ECB has an
inflation target of near but just below 2%.
Read:ECB live blog recap: Mario Draghi sees diminished downside
economic risks
(http://blogs.marketwatch.com/thetell/2017/04/27/ecb-live-blog-mario-draghi-expected-to-avoid-taper-talk/)
Meanwhile, the pound bought $1.2943, remaining above $1.29 even
after British economic growth slowed more than expected in the
first quarter. A preliminary reading of 0.3% growth was less than
the FactSet consensus estimate 0.4%, as services-sector activity
slowed considerably.
Shares of multinational companies can be hurt by strengthening
in the euro and the pound as they would hurt prospect for higher
sales and earnings made overseas.
The U.K.'s FTSE 100 index ended down 0.5% at 7,203.94
(http://www.marketwatch.com/story/ftse-100-falls-as-barclays-drops-pound-rises-ahead-of-gdp-data-2017-04-28).
French inflation data out earlier on Friday came in at 1.4%
(http://www.marketwatch.com/story/french-inflation-rises-01-misses-expectations-2017-04-28),
in line with forecasts.
In other economic news, German retail sales rose 0.1% in March
(http://www.marketwatch.com/story/german-retail-sales-nudge-higher-in-march-2017-04-28)on
the month, beating forecasts of a flat reading.
France's CAC 40 index closed Friday 0.1% lower at 5,267.33,
while Germany's DAX 30 index fell 0.1% to 12,438.01.
Italy's FTSE MIB rose 0.1% to 20,609.16. On Sunday, Italy's
governing center-left Democratic Party will hold a leadership
primary. Several polls indicate Matteo Renzi, Italy's former prime
minister, is likely to win the majority of votes.
Meanwhile, in the U.S., the first-quarter GDP reading came in
weaker than expected at 0.7% growth
(http://www.marketwatch.com/story/us-economy-posts-slowest-growth-in-three-years-first-quarter-gdp-shows-2017-04-28).
Weekly win: The pan-European benchmark ended 2.4% higher for the
week, posting its best weekly gain since December. The strong
performance came following a strong rally at the start of week
after centrist Emmanuel Macron came out on top in the first round
of the French presidential election. Macron is expected to win the
runoff round against far-right Marine Le Pen on May 7, easing fears
of a so-called Frexit.
For April, the benchmark climbed 1.6%.
Movers: Shares of UBS Group AG (UBS) rose 2.1% after the Swiss
banking giant reported earnings well ahead of forecasts
(http://www.marketwatch.com/story/ubs-beats-forecasts-as-income-growth-strong-2017-04-28)due
to strong income growth in its investment-banking and
wealth-management units.
On a more downbeat note in the banking space, shares of Barclays
PLC (BCS) (BCS) slid 5.2% after the U.K. lender said its net profit
fell by more than half in the first quarter of the year.
(http://www.marketwatch.com/story/barclays-profit-slides-on-write-down-shares-fall-2017-04-28)
Electrolux AB shares (ELUXY) rose 0.7% after the Swedish
household-appliance maker posted better-than-expected earnings of
1.08 billion Swedish kronor
(http://www.marketwatch.com/story/electrolux-shares-leap-after-earnings-beat-views-2017-04-28)($122.3
million) for the first quarter on improving trend across all of its
businesses while accelerating cost savings.
(END) Dow Jones Newswires
April 28, 2017 12:16 ET (16:16 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
Von Mär 2024 bis Apr 2024
FTSE 100
Index Chart
Von Apr 2023 bis Apr 2024