EUROPE MARKETS: Europe's Markets Succumb To More Losses As Global Geopolitical Tensions Rise
February 28 2019 - 8:54AM
Dow Jones News
By Emily Horton
ABB, AmBev, Zalando among biggest moving stocks
Europe's markets were mostly lower Wednesday, as investors
digested a range of geopolitical concerns, including an abrupt end
to a summit between North Korea and the U.S., while earnings news
dragged several big companies lower.
How are markets performing?
The Stoxx Europe 600 lost 0.2% to 371.72 after finishing down
0.3% on Wednesday.
The FTSE 100 was the region's biggest decliner, falling 0.6% to
7,064.90. London markets continued to be held back by a strong
pound, which was driven by a series of government announcements
that could reduce the chance Britain could leave the EU with no
deal. Since many FTSE 100 stocks earn substantial revenues outside
the country, strength in the U.K. currency can hurt the index.
Spain's IBEX 35 rose 0.2% to 9,236.30, while Germany's DAX (DAX)
and France's CAC 40 both lost around 0.1%, to 11,466.87 and
5,220.28 respectively.
Italy's FTSE MIB index was the regions only major index gainer,
adding 0.4% to 20,595.84.
The pound remained strong at $1.3297. Meanwhile, the euro rose
to $1.1409 from %1.1370 late in New York on Wednesday night.
What's driving the markets?
In Vietnam, President Donald Trump said talks with North Korean
leader Kim Jong Un ended without a deal after a disagreement over
lifting sanctions
(http://www.marketwatch.com/story/trump-says-talks-with-north-koreas-kim-broke-down-over-lifting-of-sanctions-2019-02-28)
on the communist country. The news triggered some losses in Asia,
notably in South Korea.
On the data front, U.S. gross domestic product data slowed to a
2.6% annual pace in the fourth quarter
(http://www.marketwatch.com/story/economy-slows-to-26-in-4th-quarter-gdp-shows-but-consumers-and-businesses-show-little-letup-2019-02-28),
but beat forecasts for a 1.4% rise. That helped Europe stocks trim
some losses, while data from Germany showed inflation edging up in
February
(http://www.marketwatch.com/story/flash-german-inflation-edges-up-in-february-2019-02-28-8485278).
In Brexit news, U.K. politicians will be given an opportunity to
push for a second referendum on the U.K's membership of the
European trading bloc
(http://www.marketwatch.com/story/brexit-brief-uk-opposition-party-to-push-for-second-eu-referendum-2019-02-28),
with the opposition Labour Party backing an amendment to file a
parliamentary motion calling for a new referendum by March 12.
What stocks are active?
Zalando SE (ZAL.XE) led Europe's top gainers jumping by 17%,
after online-only fashion retailer said it met its 2018 targets
(http://www.marketwatch.com/story/zalando-meets-targets-on-revenue-customer-growth-2019-02-28)
on the back of double-digit revenue growth in the fourth quarter.
French retailer Carrefour SA also jumped by 2% after it said it
would raise its cost-cutting targets as part of a transformation
plan.
RSA Insurance Group PLC lost almost 4% after the group announced
its profit fell in 2018
(http://www.marketwatch.com/story/rsa-insurance-profit-falls-on-london-market-losses-2019-02-28)after
its London Market business was hit by large losses.
Meanwhile, heavyweight Roll-Royce Holdings PLC (RR.LN) fell by
3% after the British manufacturer swung into a loss
(http://www.marketwatch.com/story/rolls-royce-swings-to-loss-on-trent-impairments-2019-02-28)and
announced it had withdrawn from a competition to power Boeing's new
plane, the Financial Times reported
(https://www.ft.com/content/06ed1490-3b2d-11e9-b856-5404d3811663).
Anheuser-Busch InBev SA (ABI.BT) (ABI.BT) shot up nearly 5%
after the beer giant reported a big fall in fourth-quarter net
profit
(http://www.marketwatch.com/story/ab-inbev-net-profit-hit-by-one-off-items-2019-02-28)
after booking several one-off charges. But the company said it
would deliver strong sales and earnings growth in 2019.
ABB Ltd. (ABBN.EB) fell close to 3% after the Swiss engineering
group posted a profit fall
(http://www.marketwatch.com/story/abb-profit-falls-despite-gain-in-orders-2019-02-28),
though it also reported rising orders.
(END) Dow Jones Newswires
February 28, 2019 08:39 ET (13:39 GMT)
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