EUROPE MARKETS: European Stocks Trying To Find Footing After Selloff
02 September 2015 - 10:28AM
Dow Jones News
By Carla Mozee, MarketWatch
European stocks wavered Wednesday, with investors remaining
cautious after worries about growth in China and a possible U.S.
interest-rate hike helped drive a selloff in the previous
session.
The Stoxx Europe 600 fell 0.5% to 351.18, after rising as much
as 0.8% in early trade. Only the technology, health care and
industrial sectors were registering gains.
Spain's IBEX 35 IBEX led decliners among national indexes,
losing 0.8% to 9,912.40. There, Telefonica SA (TEF) shares fell
2.9% as RBC cut its rating on the telecommunications company to
underperform from outperform.
European stocks were part of a slide in global equities Tuesday,
as weaker-than-expected factory activity data from China and mixed
manufacturing readings from the eurozone underscored concerns about
global growth.
U.S. stock futures were higher Wednesday
(http://www.marketwatch.com/story/dow-futures-jump-almost-100-points-as-us-stocks-look-set-for-rebound-2015-09-02),
indicating U.S. stocks are set for a comeback after their rout
Tuesday. Also on investors' minds were comments from a Federal
Reserve member that kept alive talk of a U.S. rate increase later
this month.
European investors will watch for any comments about growth
prospects from the European Central Bank on Thursday.
In Wednesday's trade, Germany's DAX 30 index pared its gain
earlier in the session to 4 points at 10,020.03. France's CAC 40
index swung lower by 0.1% to 4,539.38.
The FTSE 100 turned down 0.2% to 6,049.07, with energy stocks
under pressure as oil prices fell more than 2%. Oil major Royal
Dutch Shell PLC (RDSB.LN) (RDSB.LN) was down 1.2%.
Despite recent gyrations in markets, Morgan Stanley said in a
note published Tuesday that its market-timing indicators are giving
a "full-house buy signal" in European stocks. That means all five
components indicators are now in buy territory. The full-house
buying signal is the first seen since January 2009, said Morgan
Stanley.
The bank's analysts said they view "the recent volatility in
equities as a stock market event rather than providing an accurate
reflection of the economic outlook."
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(END) Dow Jones Newswires
September 02, 2015 05:13 ET (09:13 GMT)
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