EUROPE MARKETS: Europe Stocks Set For Best Monthly Return In Two Years, But Weak Data Weighs On Final Session Of January
January 31 2019 - 9:34AM
Dow Jones News
By Emily Horton
Nokia, BT, Unilever under pressure
Europe's major markets struggled for gains on Thursday, as
investors weighed up fresh data showing weakness in the single-zone
economy and enthusiasm faded over the U.S. Federal Reserve's
indication that it may be finished with rate increases for now.
Banks led the decliners.
How did markets perform?
All major European stocks were in the red by Thursday afternoon,
with the Stoxx Europe 600 down 0.3% to 357.28, after finishing up
0.4% on Wednesday. For the month, the index was set to gain 5.8%,
the best monthly return since December, according to FactSet.
Germany's DAX 30 (DAX) fell 0.7% to 11,104.74, while the FTSE
100 bucked a weaker trend, rising 0.5% to 6,973.01, France's CAC 40
was flat at 4,970.67 and Italy's FTSE MIB Italy index dropped 0.8%
to 19,609.86.
The euro was up on Thursday, fetching $1.1493 from $1.1482 late
on Wednesday night in New York. Meanwhile, the pound rose slightly
to $1.3114 from $1.3114.
What drove the markets?
On Wednesday the U.S. Federal Reserve indicated it is holding
any further interest rate rises
(http://www.marketwatch.com/story/why-stocks-surged-yields-fell-and-the-dollar-tanked-after-the-feds-dovish-pivot-2019-01-30),
citing muted inflation. Wall Street stocks rallied on the news
Wednesday, but enthusiasm had faded Thursday amid a huge load of
earnings. Trade talks between Chinese and U.S. officials also
kicked off in Washington.
Official data on Thursday showed the eurozone economy grew at
the weakest pace in four years
(http://www.marketwatch.com/story/eurozone-economy-grows-at-weakest-pace-in-4-years-2019-01-31)
in 2018 as Italy fell into recession, with the region facing
growing political tensions and the threat of weaker demand for its
exports from China and the U.K.
On the Brexit front, Jean-Claude Juncker, the president of the
European Commission, has warned U.K. Prime Minister Theresa May
that any attempt to reopen Brexit negotiations with the EU will
increase the chance of a disorderly Brexit, the Financial Times
reported
(https://www.ft.com/content/20e26db2-24af-11e9-8ce6-5db4543da632).
What shares were active?
Telecommunication stocks were under pressure on Thursday. Nokia
Corp (NOK) announced it expects bumpy growth during 2019
(http://www.marketwatch.com/story/nokia-misses-on-earnings-delivers-soft-outlook-2019-01-31)
due to the timings of 5G rollouts, leading to a 1.6% fall in the
telecoms equipment maker's stock.
Meanwhile, BT Group PLC (BT.A.LN) dropped by 1.4% on the news
that the company's adjusted earnings and revenue both declined
(http://www.marketwatch.com/story/bt-group-beats-forecasts-despite-earnings-fall-2019-01-31)
in the third quarter of fiscal 2019.
Unilever (ULVR.LN) lost nearly 3% after it warned of a tough
year ahead
(http://www.marketwatch.com/story/unilever-warns-of-tough-2019-ahead-2019-01-31).
In oil stocks, Royal Dutch Shell PLC A (RDSA.LN) reported a
profit rise
(http://www.marketwatch.com/story/shell-profit-rises-on-higher-oil-gas-prices-2019-01-31),
adding 3% to the company's stock.
Diageo PLC (DEO) gained almost 4% after it approved further
buybacks
(http://www.marketwatch.com/story/diageo-lifts-buybacks-as-tax-rise-hits-profits-2019-01-31).
Fashion retailer Hennes & Mauritz AB's (HM-B.SK)missed its
forecast (Hennes%20%26%20Mauritz%20AB%27s) on Thursday, leading to
a 1% drop in its share price.
(END) Dow Jones Newswires
January 31, 2019 09:19 ET (14:19 GMT)
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