EUROPE MARKETS: Europe Stocks Return From Christmas Break To End Lower As BP And Pharmas Slump
December 27 2018 - 1:16PM
Dow Jones News
By Emily Horton
Shares of Sage Group bucked the downbeat trend, finishing up
3.5%
Most European stock indexes on Thursday booked sharp losses, as
weaker oil prices and a retreat following Wednesday's stunning
equity-market surge weighed on sentiment.
BP PLC and Siemens AG are among the biggest blue-chip
movers.
How are the markets performing?
The Stoxx Europe 600 fell by 1.7% to 329.58. The index finished
0.4% lower on Monday just before the markets closed for the
Christmas break, a session that marked the weakest close since Nov.
8, 2016.
The German DAX slumped 2.4% to 10,381.51 and Italy's FTSE MIB
finished 1.8% lower to 18,064.62. Meanwhile, the FTSE 100 ended
1.5% lower at 6,584.68, having finished 0.5% down on Christmas
Eve.
Losses for France's CAC 40 were less intense, as that index
closed down 0.6% to 4,598.61.
As the dollar fell, the euro climbed to $1.1389, compared with
$1.1353 in New York late on Monday, while the British pound was
largely unchanged at $1.2636 from $1.2632.
What is driving markets?
(http://www.marketwatch.com/story/us-stock-futures-pull-back-after-biggest-gain-in-history-for-dow-2018-12-27)Dragging
the DAX, the biggest decliner among European bourses, headlined
Thursday's pullback, as shares of industrial giant Siemens (SIE.XE)
sank 2.4%.
Meanwhile, U.S. stocks fell Thursday
(http://www.marketwatch.com/story/us-stock-futures-pull-back-after-biggest-gain-in-history-for-dow-2018-12-27),
a day after a strong rally that reversed a battering for equities
on Christmas Eve. Wednesday saw all three major indexes log the
strongest one-day gains since March 23, 2009, on a percentage
basis, and it was the best ever day-after-Christmas performance for
the gauges.
A series of statements from senior White House aides that Trump
wasn't about to fire Jay Powell, Chair of the Federal Reserve, was
received well by the markets on Wednesday
(http://www.marketwatch.com/story/trump-started-a-fight-with-the-fed-he-had-zero-chance-of-winning-now-hes-backing-down-2018-12-26),
with the Dow soaring about 1,086 points after an afternoon
rally.
Oil, both crude oil and Brent futures dropped sharply, putting
major oil companies under pressure.
Thursday marked the sixth day of the partial U.S. government
shutdown, with neither President Trump or the Democrats showing
signs of softening its stance over the funding for his proposed
U.S.-Mexico border wall.
What stocks are active?
Nestlé SA (NESN.EB) (NESN.EB) shares dropped 3.8%, while other
heavyweights in the pharmaceutical sector -- Novartis AG (NOVN.EB)
(NOVN.EB) and Roche Holding Ltd(ROG.EB) ended down by 2% and 3.2%,
respectively.
Software and fashion sectors were in the green Thursday, with
Sage Group PLC (SGE.LN) finished the session 3.5% lower, but luxury
fashion house Burberry Group PLC (BRBY.LN) slipped 0.2%.
Among telecommunications companies, BT Group PLC (BT.A.LN)
dropped by 2.6%, while U.K. satellite company Inmarsat PLC
(ISAT.LN) led the index's decliners, with a 4.9% drop.
(END) Dow Jones Newswires
December 27, 2018 13:01 ET (18:01 GMT)
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