EUROPE MARKETS: Europe Stocks Trade Lower As German Economy Heads Toward Recession
By Steve Goldstein, MarketWatch
Europe stocks traded lower on Wednesday after data showing the
Continent's largest economy contracted and eurozone industrial
After halting a two-day losing run on Tuesday, the Stoxx Europe
600 declined 0.12% to 371.96, with banks including UniCredit
(UCG.MI) and Danske Bank (DANSKE.KO) lower.
The U.K. FTSE 100 gained 0.1% to 7258.5, the German DAX fell
0.3% to 11714.89 and the French CAC 40 weakened 0.3% to
U.S. stock futures pointed to a decline for the Dow Jones Industrial Average at the open.
What's moving markets
The state of the global economy returned to focus a day after
relief from the U.S. government delaying tariffs on Chinese
Germany's economy shrank by 0.1% in the second quarter
according to data released by Destatis, the statistics agency.
"The external backdrop is set to remain challenging due to
persistent weakness in global demand amid re-escalated U.S.-China
trade tensions and the increased likelihood of a no-deal Brexit,"
said Iaroslav Shelepko, an economist at Barclays. " Given varied
risks, a gloomy global trade outlook and elevated uncertainty, we
expect the economy to post another mild decline in the third
quarter and therefore enter a technical recession even before
Brexit and U.S.-E.U. trade risks are due to crystallize."
The economy in the eurozone as a whole rose 0.2%, Eurostat
reported, with Spain's economy rising 0.5%, France's economy
improving by 0.2% and Italy's economy staying flat.
Perhaps more concerning to markets was the 1.6% downturn in
eurozone industrial production in June, as well as the softest
Chinese industrial production growth in 17 years.
Schindler Holding fell 4% as the elevator maker said markets may
"slightly weaken over the remainder of the year" alongside a 2.8%
decline in first-half operating profit. Its guidance for an annual
net profit between 900 million and 940 million francs compares to
consensus around 970 million francs. Rival ThyssenKrupp (TKA.XE)
Straumann Holding (STMN.EB) shares rose 3.3% as first-half
earnings for the dental implant maker came in ahead of forecast and
its sales guidance was upgraded.
Admiral Group (ADM.LN) shares advanced 4% as the British insurer
reported a 4% rise in first-half pretax profit and an increase in
Drugmaker Sanofi (SAN.FR) saw its shares rise 2% as UBS upgraded
the company to buy from neutral, saying the pipeline of drugs
"looks lackluster" but isn't empty, and that it's underperformed
rivals like Novartis (NOVN.EB) , Roche (ROG.EB) and Johnson &
Johnson (JNJ) .
(END) Dow Jones Newswires
August 14, 2019 05:42 ET (09:42 GMT)
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