EUROPE MARKETS: European Stocks Build On Losses As Micro Focus Shares Plunge
19 März 2018 - 10:52AM
Dow Jones News
By Victor Reklaitis, MarketWatch
Software stock Micro Focus loses half its value after CEO
exits
European stocks lost ground Monday, extending last week's
pullback, as analysts attributed the retreat in part to persistent
worries about a global trade war.
The U.S. Federal Reserve's upcoming policy decision also was
viewed as helping to peel away investors from equities. Micro Focus
International PLC's stock was helping to lead the way lower, after
the British software maker warned on its outlook and said its CEO
has resigned.
How markets are moving
The Stoxx Europe 600 index fell 0.7% to 374.92. The pan-European
equity gauge gave up 0.8% last week, having erased part of its
potential weekly loss by gaining modestly on Thursday and
Friday.
The Stoxx 600 is down 1.2% in March and lower by 3.7% so far in
2018.
Germany's DAX 30 shed 1% to 12,263.45, and France's CAC 40 index
lost 0.8% to 5,240.70. The U.K.'s FTSE 100 index dropped 1.1% to
7,089.02
The euro bought $1.2284, down slightly from $1.2291 late Friday
in New York.
What's driving markets
Investors have been worrying this month about a potential global
trade war, and central banks have the attention of markets as well,
with a Fed decision on Wednesday. The trade concerns come as the
Trump administration takes a hawkish stance on U.S. trade with
China and moves ahead with tariffs on foreign steel and
aluminum.
Investors worldwide watch Fed rate policy, as higher American
interest rates can make riskier assets such as stocks less
attractive -- and because many companies do business in the word's
largest economy.
What strategists are saying
"There is an air of caution in financial markets to start the
week as traders look ahead to some key issues in the days ahead,"
said Richard Perry, Hantec Markets analyst.
"Fears over trade tariffs and protectionism are never far away,
whilst the Federal Reserve may be about to signal that an
acceleration in its tightening program could be ahead," he said in
a note.
Stocks in focus
Micro Focus shares (MCRO.LN) dived 52% for the Stoxx Europe
600's biggest drop. The move came after the software company said
CEO Chris Hsu has resigned and warned that revenue for fiscal 2018
will fall more than previously anticipated.
Hammerson PLC shares (HMSO.LN) soared 26% for the Stoxx 600's
largest gain after the U.K. mall owner drew and rejected a 4.9
billion-pound takeover offer
(http://www.marketwatch.com/story/klepierre-makes-49-bln-hammerson-takeover-step-2018-03-19)
from French real-estate investment company Klepierre SA.
Klepierre's stock (LI.FR) fell 3.7%.
Melrose Industries PLC (MRO.LN) on Monday lowered the acceptance
condition for its hostile 8.1 billion-pound ($11.3 billion) offer
for GKN PLC (GKN.LN) and said it will pay up to GBP1 billion into
GKN's pension scheme over the period of ownership. Shares of GKN
were up 0.8%, while shares of Melrose dropped 1%.
(END) Dow Jones Newswires
March 19, 2018 05:37 ET (09:37 GMT)
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