EUROPE MARKETS: European Indexes Slump On Renewed China Slowdown Fears
10 Januar 2019 - 2:49PM
Dow Jones News
By Emily Horton
All major European indexes fell Thursday, but were off their
worst levels after weak economic data from China and the latest
breakdown in talks over the U.S. government shutdown combined to
spook investors.
Mining stocks were struggling, but it was a better story for the
U.K.'s big retailers as Christmas sales announcements continued to
roll in.
What did markets do?
The Stoxx Europe 600 fell by 0.1% to 347.26, after finishing up
0.5% on Wednesday.
France's CAC 40 was the biggest regional loser on Thursday,
dropping by 0.5% to 4,789.49. The German Dax 30 lost 0.1% to
10,880.12, while the U.K.'s FTSE 100 was flat at 6,902.49.
Italy's FTSE MIB Italy index lost 0.1% to 19,156.58.
The euro slid to $1.1535 from $1.1545 late in New York on
Wednesday, while the pound dropped to $1.2758 from $1.2788.
What is driving the markets?
(http://www.marketwatch.com/story/us-gains-312000-jobs-in-final-month-of-2018-soaring-above-wall-street-forecast-2019-01-04)Consumer
and producer prices decelerated sharply in China
(http://www.marketwatch.com/story/chinas-sluggish-prices-raise-deflation-fears-2019-01-10-24851247)
last month, compounding the challenge for Beijing to boost sluggish
demand in a deepening economic downturn. This replaced earlier
investor optimism created by the progress being made in trade talks
between Washington and Beijing.
Another worry for investors is the partial U.S. government
shutdown, with the stalemate entrenched after President Donald
Trump walked out of his latest meeting with Democrats on Wednesday
(http://www.marketwatch.com/story/trump-today-president-keeps-border-emergency-option-on-table-as-he-meets-with-lawmakers-2019-01-09).
In France, industrial production unexpectedly fell in November
(http://www.marketwatch.com/story/french-industrial-production-falls-in-november-2019-01-10)
-- flashing another a warning sign from one of the world's major
economies. Production fell 1.3% in November, French statistics
agency Insee said Thursday, well short of analysts' expectations of
an increase of 0.1%.
In the U.K., an alliance of MPs came together on Wednesday to
force key amendments for the preparation of a possible 'no deal'
Brexit from the European Union
(http://www.marketwatch.com/story/brexit-brief-uk-business-secretary-warns-of-disaster-from-crash-out-exit-2019-01-10).
The amendments require Prime Minister Theresa May to produce a plan
B for Brexit within three days if she loses the crucial Jan. 15
parliamentary vote on her proposed exit deal.
What stocks are active?
Miners were under pressure on Thursday, with BHP Group PLC
(BHP.LN) losing nearly 6% and Glencore PLC (GLEN.LN) down 0.5%.
German manufacturer Osram Licht AG (OSR.XE) was one of the
biggest losers on the Stoxx Europe 600, falling by nearly 6%, a day
after the Federal Statistical Office announced poor export figures
for November
(http://www.marketwatch.com/story/german-exports-drop-underlining-slowdown-fears-2019-01-09).
Tesco PLC (TSCO.LN) gained 0.9% after it announced upbeat
Christmas sales results
(http://www.marketwatch.com/story/tesco-beats-on-christmas-sales-targets-on-track-2019-01-10)on
Thursday. Supermarket J Sainsbury PLC (SBRY.LN) also added 2%.
(END) Dow Jones Newswires
January 10, 2019 08:34 ET (13:34 GMT)
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