EUROPE MARKETS: European Stocks On Course For 2nd Losing Session, With Tech Knocked Down
06 Dezember 2017 - 11:30AM
Dow Jones News
By Carla Mozee, MarketWatch
Anheuser-Busch shares downgraded
European stocks dropped Wednesday, with tech and mining shares
fronting broad-based losses across the region, setting blue chips
on course for a second consecutive decline.
What markets are doing: The Stoxx Europe 600 fell 0.6% to
384.41. No sector moved higher, and losses were led by the tech and
basic material groups. On Tuesday, the regional benchmark shed 0.2%
(http://www.marketwatch.com/story/european-stocks-hampered-by-losses-for-tech-shares-2017-12-05).
Germany's DAX 30 index fell 1% to 12,924.19, and France's CAC 40
gave up 0.5% to 5,349.69. Spain's IBEX 35 gave up 0.6% to 10,149.40
and the U.K.'s FTSE 100 slipped 0.2% to 7,315.88.
The euro traded at $1.1816, down from $1.1826 late Tuesday in
New York.
What's moving markets: Techs were under pressure, with the Stoxx
Europe 600 Technology Index dragged down 1%. That followed declines
on Wall Street, where the tech-heavy Nasdaq Composite lost ground
and a selloff in tech stocks left Asian markets lower.
In the European tech group, shares of STMicroelectronics NV
(STM) dropped 3.3% and Micro Focus International PLC (MCRO.LN) fell
2.8%.
There are worries that the retention of the U.S.'s corporate
alternative minimum tax, or AMT, in the Senate version of the
Republicans' tax bill would hit tech companies harder than others.
The House's version of its tax bill repealed the corporate AMT, but
in a last-minute switch before passing its bill early Saturday
morning, the Senate decided to keep the provision.
Read:Here's how violent the stock-market rotation out of tech
has been
(http://www.marketwatch.com/story/heres-how-violent-the-stock-market-rotation-out-of-tech-has-been-2017-12-05)
Meanwhile, mining stocks were hurt in the wake of recent losses
for copper prices on worries over rising inventories and the
potential for slowing demand from China, which makes up about half
of global consumption for the industrial metal. The Stoxx Europe
600 Basic Resources Index lost 1.1%.
What strategists are saying: "Having seen some decent gains so
far this year, there appears to be increasing evidence that markets
are starting to look a little tired," said CMC Markets UK Chief
Market Analyst Michael Hewson in a note.
"This declining momentum has been something that has been
particularly notable in European markets since the peaks back in
early November, and while we have managed to find some level of
support for most of the past week or so, the subsequent rebounds
have been getting shallower," he said.
European stocks were on course for losses Wednesday "as U.S.
politicians look to pick apart the two different incarnations of
the U.S. tax bill and try and pass it into a format that both
houses can agree on," Hewson added.
Stock movers: Steinhoff International Holdings NV plunged 57%
after the retail holding company said Chief Executive Markus Jooste
resigned with immediate effect
(http://www.marketwatch.com/story/steinhoff-tanks-57-as-ceo-leaves-amid-accounting-probe-2017-12-06)
amid an accounting probe. The company said "new information has
come to light today which relates to accounting irregularities
requiring further investigation."
Saga PLC (SAGA.LN) sank 24%, looking at their worst session on
record, after the travel and insurance company warned that it
expects its underlying profit growth
(http://www.marketwatch.com/story/saga-profit-lagging-on-monarch-collapse-headwinds-2017-12-06)
for its current financial year to be behind the previous year. It
cited more challenging insurance broking conditions and disruption
to its tour operations as reasons for the outlook.
Intu Properties (INTU.LN) rallied 20% as retail property
developer Hammerson PLC (HMSO.LN) said it's buying the shopping
center owner for GBP3.4 billion ($4.6 billion). Hammerson shares
fell 1.8%.
Anheuser-Busch InBev SA (ABI.BT) was off 1.4% after a ratings
downgrade to underweight from neutral at J.P. Morgan Cazenove.
But J.P. Morgan Cazenove upgraded its rating on budget airline
EasyJet PLC (EZJ.LN) to overweight from underweight. Shares rose
0.9%. Separately, EasyJet is set to roll out German domestic routes
from Berlin next month, according to media reports.
.
(END) Dow Jones Newswires
December 06, 2017 05:15 ET (10:15 GMT)
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