EUROPE MARKETS: European Stocks Hampered By Losses For Tech Shares
05 Dezember 2017 - 11:32AM
Dow Jones News
By Carla Mozee, MarketWatch
Provident Financial leads losses on regional benchmark; Tesco
upgraded
European stocks fell into the red Tuesday, on course for their
third loss in four sessions, with technology shares taking their
cue from a selloff on Wall Street.
What markets are doing: The Stoxx Europe 600 fell 0.2% to
386.78, led by health care and tech shares. But consumer goods and
services and utility shares led advancing sectors. The benchmark on
Monday rose 0.9%
(http://www.marketwatch.com/story/dax-jumps-by-the-most-in-a-month-as-us-tax-progress-revs-up-european-stocks-2017-12-04).
Germany's DAX 30 index fell 0.2% to 13,027.33 after Monday's
surge of 1.5%, its biggest daily rise since Nov. 1, according to
FactSet data.
France's CAC 40 fell 0.2% to 5,378.46 and Spain's IBEX 35 gave
up 0.3% to 10,183.90. But the U.K.'s FTSE 100 rose 0.2% to
7,356.22.
The euro traded at $1.1842, down from $1.1865 late Monday in New
York.
What's moving markets: The tech sector was in focus after the
group was beaten down during Monday's U.S. trading session, leaving
the Nasdaq Composite Index down 1.1%. The selloff in techs
stretched into the Asian trading session and into European
dealings. The Stoxx Europe 600 Technology Index fell 0.4%.
The moves came on the heels of this weekend's passage in the
U.S. Senate of the Republican-sponsored proposal for an overhaul in
the tax code
(http://www.marketwatch.com/story/senate-passes-tax-bill-advancing-top-republican-priority-2017-12-02).
The "U.S. tax-cut inspired sector rotation saw further dumping
of technology [stocks] -- profit taking, less perceived benefit --
in favor of more growth sensitive and value names including banks,
retail and materials," said analysts at Accendo Markets in
note.
The House and Senate now must agree on a single tax bill before
it can be sent to President Donald Trump to sign into law.
Read:Chipmaker, software stocks close sharply lower as tax
overhaul progresses
(http://www.marketwatch.com/story/chipmakers-software-developer-stocks-hit-hard-as-tax-reform-progresses-2017-12-04)
Also read:Trump celebrates tax-bill victory as opponents vent
their fury via #TaxScamBill
(http://www.marketwatch.com/story/trump-celebrates-tax-bill-victory-as-opponents-vent-their-fury-via-taxscambill-2017-12-02)
Investors were also keeping tabs on the Brexit process, with
reports the U.K. Prime Minister Theresa May will return to Brussels
to continue talking with European Union officials. On Monday, May
and European Commission President Jean-Claude Juncker said they
hadn't been able to reach an agreement on some Brexit issues.
There had been reports that an agreement on avoiding a
post-Brexit hard border between the Republic of Ireland and
Northern Ireland was getting close, but the deal was reportedly
shot down by Northern Ireland's Democratic Unionist Party. The DUP
struck a support deal with May's party earlier this year.
British officials have been working to settle some issues before
EU leaders meet at a summit on Dec. 14-15.
Stock movers: In the tech sector, shares of software maker
Temenos Group AG (TEMN.EB) fell 4%, chip maker AMS AG (AMS.EB) lost
2.2% and Logitech International SA (LOGI) fell 2.1%.
Provident Financial PLC shares (PFG.LN) stumbled 12% as the
company said the U.K. Financial Conduct Authority has launched an
investigation into its car-financing unit, Moneybarn
(http://www.marketwatch.com/story/fca-probes-provident-car-finance-arm-moneybarn-2017-12-05).
Tesco PLC (TSCO.LN) (TSCO.LN) climbed 4.3% after Goldman Sachs
raised its rating on the supermarket chain to buy from sell.
(END) Dow Jones Newswires
December 05, 2017 05:17 ET (10:17 GMT)
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