EUROPE MARKETS: European Stocks Wander As Corporate Updates Come Into Focus

By Carla Mozee, MarketWatch

German inflation rises to highest since 2013

European stocks searched for firm direction Wednesday, as investors sifted through corporate updates, including better-than-anticipated results from ASML Holding NV.

The Stoxx Europe 600 was down less than 1 point at 362.28, drifting back from a modest gain of 0.3%. Sectors losing ground included consumer services, financials and industrials, while technology, consumer goods and health care shares moved higher.

The pan-European benchmark on Tuesday closed down by 0.2% (http://www.marketwatch.com/story/european-stocks-sag-as-uk-sets-sights-on-exiting-eus-single-market-2017-01-17), but came off session lows after U.K.'s Prime Minister Theresa May said British lawmakers will be able to vote on terms of a final Brexit deal negotiated between U.K. and European Union officials. Britain will leave the bloc's single market, she said in a speech Tuesday in London, (http://www.marketwatch.com/story/uk-leader-theresa-mays-plan-for-brexit-text-of-her-speech-in-full-2017-01-17)or make a so-called hard Brexit.

"Taken together this should help alleviate some of the harder Brexit concerns that overall sends a positive signal to reassure U.K. business and investors," said James Woods, global investment analyst at Rivkin Securities, in a note. "However a healthy skepticism remains, given free trade agreements typically take more than two years the negotiate, that's if the U.K. is able to reach such an agreement with the EU."

Read: Why Theresa May is right to take a huge gamble on hard Brexit (http://www.marketwatch.com/story/why-theresa-may-is-right-to-take-a-huge-gamble-on-hard-brexit-2017-01-17)

(http://www.marketwatch.com/story/uk-leader-theresa-mays-plan-for-brexit-text-of-her-speech-in-full-2017-01-17)And:May offers escape hatch to U.K. banks, car makers in Brexit speech (http://www.marketwatch.com/story/uks-may-offers-escape-hatch-to-banks-car-makers-in-brexit-plan-speech-2017-01-17)

Among major indexes, Germany's DAX 30 moved up 0.2% to 11,561.28 on Wednesday and the U.K's FTSE 100 (http://www.marketwatch.com/story/ftse-100-in-recovery-mode-after-worst-selloff-in-six-months-2017-01-18) edged up 0.1% to 7,229.57. The London index on Tuesday slid 1.5% (http://www.marketwatch.com/story/ftse-100-slips-as-may-signals-britain-will-leave-eus-single-market-2017-01-17), its worst performance since June 27, according to FactSet data.

U.K. blue-chips sold off Tuesday as the pound soared nearly 3%, posting its biggest one-day gain since December 2008. On Wednesday, sterling was buying $1.2311, down from $1.2378 late Tuesday.

Movers: Pearson PLC shares (PSON.LN) plunged 24% after the publisher of educational materials warned of lower future dividends (http://www.marketwatch.com/story/pearson-warns-on-profit-as-us-demand-slackens-2017-01-18) and profit, citing a slide in U.S. demand.

ASML Holding NV shares (ASML.AE) climbed 4.6% after the Dutch chip-equipment maker's quarterly profit and earnings forecast came in above expectations.

Gerresheimer AG shares (GXI.XE) popped up 6.4% after Deutsche Bank upgraded the German drugs packaging firm to a buy rating from hold.

Novozymes A/S (NZYM-B.KO) rose 2.4% after the world's largest maker of enzymes projected 2017 sales and profit growth and said it plans a share buy back up to 2 billion kroner. The company also plans to cut 198 jobs.

Deutsche Bank AG (DBK.XE) (DBK.XE) was down 0.2%. The U.S. Department of Justice on Tuesday finalized its settlement with Germany's largest lender (http://www.marketwatch.com/story/justice-dept-finalizes-72-billion-settlement-with-deutsche-bank-2017-01-17) over allegations the bank misled about residential mortgage-backed securities between 2006 and 2007. The bank will pay $3.1 billion and provide $4.1 billion in relief to underwater homeowners and others.

Other indexes: France's CAC 40 was down 0.5% at 4,834.65 and Spain's IBEX 35 was fractionally higher at 9,395.40.

The euro changed hands at $1.0694, down from $1.07504 late Tuesday.

Economic data and other developments: Inflation in Germany was confirmed to have increased to 1.7% in December, (http://www.marketwatch.com/story/german-inflation-hits-highest-level-since-2013-2017-01-18) the highest annual rate since July 2013, led by rising prices for fuel and heating oil, Destatis said Wednesday.

Eurozone inflation for December was confirmed at 1.1%.

The European Commission has asked Italy to reduce its 2017 budget deficit (http://www.marketwatch.com/story/eu-asks-italy-to-cut-its-budget-deficit-2017-01-18) by about EUR3.4 billon ($3.64 billion) to avoid an excessive-deficit procedure that could include fines.

(END) Dow Jones Newswires

January 18, 2017 05:26 ET (10:26 GMT)

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