EUROPE MARKETS: Europe Stocks Stumble As Weak Oil Prices, Trade Worries Weigh On Investors
June 12 2019 - 8:58AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Axel Springer, Dassault Systemes, oil names active
European stocks fell Wednesday, tracking losses across global
markets as oil prices fell and investors were filled with fresh
uncertainty over a potential trade deal between the U.S. and
China.
How are markets performing?
The Stoxx 600 fell 0.5% to 378.74, after a 0.9% gain on
Tuesday.
In Germany, the DAX fell 0.6% to 12,086.16, after a 1.3% climb
Tuesday.
The U.K.'s FTSE 100 dropped 0.7% to 7,340, on the heels of a
0.5% gain.
Elsewhere, France's CAC 40 fell 0.7%, nearly reversing a 0.8%
gain Tuesday, while Italy's FTSE MIB dropped 0.7%, from a 0.9% gain
the prior session.
The pound was flat at $1.2737, while the euro slipped 0.1% to $1.132.
What's moving the markets?
Renewed concerns over a U.S.-China trade deal damped enthusiasm
for global equities after the Dow Jones Industrial Average broke a
6-session winning streak. Trade-deal optimism had been building
ahead of a Group of 20 meeting at the end of the month, but U.S.
President Donald Trump admitted Tuesday he was "holding up" a deal
(http://www.marketwatch.com/story/trump-i-have-no-interest-in-trade-deal-until-china-reverses-its-stance-2019-06-11)
between the countries.
Oil was the biggest losing sector in Europe, as heavily weighed
companies tracked sharp falls in U.S. and Brent crude prices , down
over 2% each
(http://www.marketwatch.com/story/crude-prices-slide-on-signs-of-rising-us-inventories-2019-06-12).
That was after a report showing higher U.S. inventories and ahead
of a key government report on supplies data due later. Total SA
(FP.FR) fell nearly 2%, while BP PLC (BP.LN) (BP.LN)
As well, investors were watching unrest in Hong Kong where
thousands of protesters surrounded government headquarters on
Wednesday, forcing the delay of a legislative session
(http://www.marketwatch.com/story/renewed-protests-in-hong-kong-as-government-debates-extradition-bill-2019-06-11)
to vote on a bill that would allow criminal suspects in Hong Kong
to be sent for trial in mainland China. Police opened up with tear
gas and water cannons to try to disperse those protesters, and Hong
Kong stocks tumbled amid the unrest.
Which stocks are active?
Axel Springer (SPR.XE) surged 11%, making for a top gainer in
the Stoxx Europe 600 index, after private equity group KKR (KKR)
announced a $7.7 billion takeover offer
(http://www.marketwatch.com/story/kkr-to-buy-axel-springer-for-68-billion-euros-2019-06-12)
for the German media group.
Dassault Systemes SA (DSY.FR) shares fell 1.6% after announcing
a deal to buy U.S. health care software group Medidata Solutions
Inc. (MDSO) in a $5.8 billion deal
(http://www.marketwatch.com/story/dassault-offers-to-buy-medidata-in-58-billion-deal-2019-06-12).
Shares of Spanish retail group Inditex SA (ITX.MC) fell 1% after
posting a better-than-expected net profit rise, but sales that came
in below expectations
(http://www.marketwatch.com/story/inditex-profit-sales-rise-2019-06-12).
Banks were also under pressure across the board, with HSBC
Holdings PLC (HSBA.LN) (HSBA.LN) dropping 1% and Banco Santander SA
(SAN.MC) fell 1%.
(END) Dow Jones Newswires
June 12, 2019 08:43 ET (12:43 GMT)
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