EUROPE MARKETS: European Markets Green As Trade Talk Optimism Spreads; SocGen Up On Cost-cut Talk
February 22 2019 - 9:14AM
Dow Jones News
By Emily Horton
Germany narrowly misses falling into recession
Europe's markets were positive on Friday, after investor
optimism from U.S.-China trade talks spread through the
indexes.
How are markets performing?
The Stoxx Europe 600 gained 0.2% to 371.33, after finishing down
0.3% on Thursday.
Italy's FTSE MIB index was the regions top climber, adding 0.3%
to 20,277.26.
Meanwhile the rest of Europe's major indexes added around 0.3%
on Friday, with the German DAX (DAX) rising 0.6% to 11,487.86, the
FTSE 100 jumping 0.6% to 7,206.28 and France's CAC 40 rising 0.4%
to 5,214.81.
The euro climbed on Friday, fetching $1.1331 from $1.1337 late
in New York on Thursday, while the pound dropped 0.4% to $1.2989
from $1.3040.
What's driving the markets?
As this week's trade talks between the U.S. and China come to a
close, investors are optimistic about progress, with President
Donald Trump reportedl
(https://www.reuters.com/article/us-usa-trade-china-trump/trump-to-meet-chinese-vice-premier-liu-he-on-friday-white-house-idUSKCN1QB05V)y
set to meet with China's top trade negotiator on Friday. Although
negotiations appear to be moving forward, officials from both sides
have reportedly
(https://www.reuters.com/article/us-usa-trade-china/us-china-haggle-over-toughest-issues-in-trade-war-talks-idUSKCN1QA2NH)
struggled to agree on specific language as they develop the
framework of a potential trade deal.
Germany's economy narrowly missed falling into recession in the
final quarter of last year
(http://www.marketwatch.com/story/german-economy-narrowly-avoids-recession-2019-02-22),
official data from the Office of National Statistics showed on
Friday. Higher state spending and booming construction prevented
the Europe's largest economy from slumping.
However, the Ifo Institute announced on Friday Germany's
business sentiment had d
(http://www.marketwatch.com/story/german-business-sentiment-hits-4-year-low-2019-02-22)ropped
to a four-year low
(http://www.marketwatch.com/story/german-business-sentiment-hits-4-year-low-2019-02-22)
in February, a sign the slowdown felt in the second half of 2018
has continued into 2019.
The final eurozone CPI reading for January inflation also due
out on Friday, which is "expected to show that headline inflation
fell further from 1.6% to 1.4%, with core prices set to stay
unchanged at 1.1%," according to Michael Hewson, chief market
analyst at CMC Markets UK.
What stocks are active?
FTSE 250-listed challenger bank Metro Bank PLC (MTRO.LN) gained
5%, after it was awarded GBP120 million in funding from Banking
Competition Remedies Ltd
(http://www.marketwatch.com/story/metro-bank-receives-1566-million-in-funding-2019-02-22).
The funding, which is part of a GBP775 million Royal Bank of
Scotland PLC (RBS.LN) scheme designed to boost competition in the
business banking sector, was awarded to the retail bank despite its
recent serious account errors.
Société Générale S.A. (GLE.FR) added 2%, after the French
investment bank said it was considering cutting "hundreds or even
thousands of jobs"
(http://www.marketwatch.com/story/socgen-may-cut-thousands-of-jobs-bloomberg-2019-02-22)
in an effort to offset growing cost pressure from regulation,
Bloomberg reports.
Meanwhile, Swedish bank Swedbank AB (SWED-A.SK) added 4%, while
Barclays (BCS) lost 2% after lackluster earnings on Thursday.
(END) Dow Jones Newswires
February 22, 2019 08:59 ET (13:59 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Global X Funds Global X ... (NASDAQ:DAX)
Historical Stock Chart
From Nov 2024 to Dec 2024
Global X Funds Global X ... (NASDAQ:DAX)
Historical Stock Chart
From Dec 2023 to Dec 2024
