EUROPE MARKETS: European Stocks Sag With ECB's Final Policy Meeting Of The Year On Deck
14 Dezember 2017 - 10:27AM
Dow Jones News
By Carla Mozee, MarketWatch
Steinhoff to restate results; EU leaders gather in Brussels
European stocks slipped Thursday, as investors prepared to
receive policy decisions from the European Central Bank and the
Bank of England and to hear what the banks may signal about
interest rates moving forward.
How markets are moving: The Stoxx Europe 600 index fell 0.3% to
389.61, led by losses in the financial and tech sectors. But the
telecom and utility sectors were the top sectors moving upward. On
Wednesday, the benchmark slipped 0.2%
(http://www.marketwatch.com/story/european-stocks-step-back-from-highest-in-5-weeks-but-retailers-gain-ground-2017-12-13),
pulling back from its highest close since Nov. 8.
Among national indexes, Germany's DAX 30 index fell 0.2% to
13,099.55, and France's CAC 40 dropped 0.2% to 5,387.06.
Spain's IBEX 35 turned up 0.2% to 10,276.50. In London, the FTSE
100 gave up 0.2% at 7,480.10
(http://www.marketwatch.com/story/ftse-100-drops-after-may-loses-key-brexit-vote-boe-decision-ahead-2017-12-14).
The euro bought $1.1832, extending gains after German
manufacturing PMI figures outstripped expectations. The shared
currency late Wednesday bought $1.1827 Wednesday in New York.
In the bond market, the yield on Germany's 10-year government
bond was up less than 1 basis point at 0.317%. Yields rise when
prices fall.
Read:What European stock-market sector looks good in 2018?
(http://www.marketwatch.com/story/what-stock-market-sector-looks-good-in-2018-think-planes-trains-and-automobiles-2017-12-11)
What's moving markets: The European Central Bank will release
its last policy decision of the year, at 12:45 p.m. London time, or
7:45 a.m. Eastern Time. ECB President Mario Draghi will hold a
press conference at 1:30 p.m. London time, or 8:30 a.m.
Eastern.
Traders will look for more signals on interest rates, staff
projections for economic growth and inflation and whether the
bank's stimulus measures will be further tapered after September
2018. The central bank in October
(http://blogs.marketwatch.com/thetell/2017/10/26/live-blog-ecb-to-begin-tapering-its-massive-bond-buying-program-in-january/)
said it would halve its aggressive bond-buying program to EUR30
billion from EUR60 billion starting next month.
Read:3 things to watch for at Thursday's ECB meeting
(http://www.marketwatch.com/story/3-things-to-watch-for-at-thursdays-ecb-meeting-2017-12-13)
The Bank of England will release its monetary policy decision at
noon London time, or 7 a.m. Eastern Time. But after raising rates
for the first time in a decade in November, the BOE is widely
expected to stand pat Thursday.
The Swiss National Bank on Thursday held its deposit rate at
minus 0.75%, meeting expectations.
Read: What analysts are looking for in Thursday's Bank of
England meeting
(http://www.marketwatch.com/story/what-analysts-are-looking-for-in-thursdays-bank-of-england-meeting-2017-12-12)
Brexit in Brussels: Meanwhile, Brexit was a major focus after
U.K. Prime Minister Theresa May's government late Wednesday was
defeated in a key parliamentary vote on legislation for the U.K.
divorce from the EU.
The setback for the government comes just as EU leaders --
including May -- prepare to meet in Brussels on Thursday and Friday
for a summit where Brexit is high on the agenda. The group is
expected to give the green light for divorce talks to move onto the
second phase
(http://www.marketwatch.com/story/breakthrough-on-brexit-terms-opens-way-to-next-phase-of-talks-2017-12-08).
The U.K.'s lower house on Wednesday voted to amend the Brexit
bill to give members of parliament the power to reject the final
divorce deal struck with Brussels. The government had warned that
the measure could jeopardize a smooth exit from the EU in March
2019.
The vote -- which was an amendment to May's flagship Brexit bill
-- came after a rebellion of 11 members of her own Conservative
Party, and is seen as a potential route to a softer Brexit.
The pound slipped after the vote
(http://www.marketwatch.com/story/british-pound-slips-as-uk-parliament-votes-to-change-brexit-plan-2017-12-13)
on Wednesday, but bounced back early on Thursday.
Stock movers: Steinhoff International Holdings NV slid 13% after
the owner of Poundland and Mattress Firm said it will restate its
2016 financial results
(http://www.marketwatch.com/story/steinhoff-to-restate-2016-financial-results-2017-12-14-24853710)
as part of its scrutiny into its European segment's 2017 balance
sheet assets.
Capita PLC (CPI.LN) tumbled 11% as the London-based business and
outsourcing services company said its bid pipeline is currently
valued at GBP2.5 billion, but that the bids are unlikely to add to
profit in 2018 if successful.
(http://www.marketwatch.com/story/capita-sees-2017-in-line-bids-wont-add-to-profit-2017-12-14)
Denmark's Vestas Wind Systems AS (VWS.KO) rose 4.5% and Spain's
Siemens Gamesa Renewable Energy SA (SGRE.MC) gained 1.5% following
reports that some Republican members of the U.S. Senate are
reconsidering potential cuts of tax credits for renewable
energy.
Off the Stoxx 600, Lonmin PLC (LMI.LN) jumped 15% after the
platinum producer agreed to be purchased
(http://www.marketwatch.com/story/lonmin-agrees-to-takeover-by-sibanye-stillwater-2017-12-14)
by South Africa's Sibanye-Stillwater (SGL.JO) .
(END) Dow Jones Newswires
December 14, 2017 04:12 ET (09:12 GMT)
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