EUROPE MARKETS: European Stocks End Lower, Log 1.3% Weekly Slump

By Sara Sjolin, MarketWatch

Euro rises against dollar after concerns Russia probe is moving closer to Trump

European stocks declined on Friday, suffering a second straight weekly loss, as disappointing corporate updates and broker downgrades provided pressure.

Equities were also weighed by a stronger euro against the dollar, after the greenback stumbled on news top officials from President Donald Trump's election campaign were subpoenaed in the Russia probe.

What did markets do?: The Stoxx Europe 600 index gave up 0.3% to close at 383.80, extending its weekly decline to 1.3%.

Germany's DAX 30 index dropped 0.4% to 12,993.73 on Friday, while France's CAC 40 dropped 0.3% to 5,319.17. The U.K.'s FTSE 100 index slipped 0.1% to 7,380.68.

What drove markets?: Traders continued to watch corporate earnings, which produced some downbeat news on Friday. Elior Group (ELIOR.FR) tumbled 18% after the catering group cut its guidance, while Carillion PLC (CLLN.LN) plunged 48% after warning that full-year profit will be "materially" lower than what the market expects.

Meanwhile, broker downgrades were also yanking some stocks lower. Zara parent Industria de Diseno Textil (ITX.MC), or Inditex, lost 1.7% after Berenberg cut the stock to sell from hold. Fresenius SE & Co. (FRE.XE) fell 5.4% after UBS downgraded the health care company to sell from neutral. United Utilities Group PLC (UU.LN) gave up 4.4% after HSBC cut the stock to hold from buy, according to Dow Jones Newswires.

The euro was boosted by a broad-based slide in the dollar (http://www.marketwatch.com/story/dollar-slips-on-concerns-russia-probe-is-moving-closer-to-trump-2017-11-17) that came after The Wall Street Journal reported that U.S. special counsel Robert Mueller's team in mid-October issued a subpoena to more than a dozen officials (http://www.marketwatch.com/story/mueller-subpoenaed-trump-campaign-documents-in-october-2017-11-16) from Donald Trump's campaign, asking them to hand over Russia-related documents.

Mueller is overseeing an investigation into whether Trump associates colluded with Russia to meddle in the 2016 presidential election. Both Moscow and Trump have denied any interference.

The shared currency bought $1.1796, up from $1.1771 late Thursday in New York. A stronger euro tends to hit stocks of European exporters, as their products become more expensive for overseas buyers.

Investors in Europe also continued to track developments in Washington around the Republican tax -cut plan. The focus is now on the Senate after the House of Representatives passed a sweeping bill to overhaul the tax code (http://www.marketwatch.com/story/house-passes-tax-overhaul-as-spotlight-turns-to-senate-2017-11-16) on Thursday. But the Republicans' proposed legislation has several steps to go, with immediate hurdles ahead.

A revised bill moving through the Senate Finance Committee differs in key respects from the House measure, and would delay the corporate-rate tax cut until 2019.

Other stock movers: Shares of Sky PLC (SKY.LN) rose 4.1% after reports Comcast Corp. (CMCSA) and Verizon Communications Inc. (VZ) are exploring bids to buy (http://www.marketwatch.com/story/comcast-seeks-to-buy-significant-part-of-fox-verizon-interested-too-2017-11-16) 21st Century Fox Inc.'s (FOX) stake in Sky, among other assets.

Vivendi SA (VIV.FR) rose 4.4% after positive analyst comments following the French media conglomerate's third-quarter earnings released late Thursday.

Shares of Altice NV (ATC.AE) slid 12%, continuing a spectacular losing streak that started in early November when the company issued a poorly received trading update. The stock has lost 50% month-to-date.

Draghi in focus: European Central Bank President Mario Draghi in a speech in Frankfurt (https://www.ecb.europa.eu/press/key/date/2017/html/ecb.sp171117.en.html) expressed confidence in the eurozone's economic recovery, saying the region is "in the midst of a solid economic expansion." The ECB boss cautioned, however, that inflation remains sluggish, warranting a "patient and persistent approach to our monetary policy."

(END) Dow Jones Newswires

November 17, 2017 12:03 ET (17:03 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.