EUROPE MARKETS: European Stocks Slump As Caution Over Geopolitical Tensions Lingers
10 August 2017 - 6:36PM
Dow Jones News
By Carla Mozee and Sara Sjolin, MarketWatch
European stocks fell Thursday, with caution still lingering as
tension between U.S. and North Korea escalated, and as German
consumer-goods company Henkel AG & Co. was among the companies
whose shares pulled the market toward a second consecutive
decline.
The Stoxx Europe 600 fell 1% to 376.05, led by losses in the
industrial group. The utility and health-care sectors were the only
ones showing gains. The pan-European benchmark on Wednesday fell
0.7%
(http://www.marketwatch.com/story/european-stocks-slide-as-us-north-korea-strife-sends-haven-assets-higher-2017-08-09)
in a selloff prompted by tensions between the U.S. and North Korea
escalated.
"European stocks have suffered heavy losses again because of the
situation between the U.S. and North Korea," said David Madden,
market analyst at CMC Markets, in a note.
"The showdown between the two nations has scared off many
investors. Whenever dealers hear the word 'war' they usually run
for the hills, and that is exactly what we have seen today. While
tensions are running high, traders will be reluctant to be long,"
he added.
On Thursday, Germany's DAX 30 lost 1.2% to 12,014.30. The index
briefly dipped to 11,993.73, trading below the 12,000 level for the
first time since April.
France's CAC 40 index fell 0.6% to 5,115.23, while in London,
the FTSE 100 moved down 1.4% to 7,389.94
(http://www.marketwatch.com/story/ftse-100-drops-as-home-builders-fall-on-gloomy-price-data-2017-08-10),
for its biggest one-day percentage loss since April.
Those moves came after North Korean leader Kim Jong Un made an
explicit threat to strike a U.S. military base in Guam
(http://www.marketwatch.com/story/north-korea-threatens-missile-strike-on-us-base-on-guam-2017-08-08).
His order, reported in state media, came hours after U.S.
President Donald Trump late Tuesday warned Pyongyang not to "make
any more threats" to the U.S, saying it would face a "fire and
fury" response
(http://www.marketwatch.com/story/trump-today-president-says-north-korea-faces-fire-and-fury-if-it-doesnt-halt-threats-2017-08-08)
"like the world has never seen." Trump's comments came after a
Washington Post report
(https://www.washingtonpost.com/world/national-security/north-korea-now-making-missile-ready-nuclear-weapons-us-analysts-say/2017/08/08/e14b882a-7b6b-11e7-9d08-b79f191668ed_story.html?utm_term=.0938becb046e)
that North Korea has built a miniaturized nuclear warhead.
European equities on Thursday didn't find much relief from a
pullback in the euro, with the shared currency buying $1.1730, down
from $1.760 late Wednesday in New York.
Stock movers: Henkel (HEN.XE) fell 4.1% after the maker of
Schwarzkopf hair care products, Right Guard deodorant and Persil
detergent posted second-quarter organic sales growth of 2.2%, which
was below consensus of 3.2%, according to Investec.
"Henkel's Beauty has underperformed peers for several years and
given the results this morning, this trend looks set to continue --
at least over the near-term," said Investec analyst Eddy Hargreaves
in a note.
Adecco Group AG shares (ADEN.EB) fell 6.4%. The staffing
services company posted a rise in second-half profit to EUR192
million, and analysts polled by Thomson Reuters had expected
earnings of EUR194 million.
Aegon NV (AGN.AE) climbed 5.3% as the Dutch insurer reported a
23% rise in underlying earnings
(http://www.marketwatch.com/story/aegon-underlying-earnings-rise-on-improved-claims-2017-08-10)
and said it's selling its Aegon Ireland PLC business to help
increase financial flexibility.
Galapagos NV (GLPG.AE) soared 8.3% after the company posted
positive clinical trial results of a pulmonary fibrosis
treatment.
Shares of SFR Group SA (SFR.FR) rallied 9.2% after Altice NV
(ATC.AE) raised its stake in the French telecoms company to more
than 95% and said it's planning a full buyout.
(END) Dow Jones Newswires
August 10, 2017 12:21 ET (16:21 GMT)
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