EUROPE MARKETS: European Stocks Waver As Traders Digest Weak Inflation Data

By Sara Sjolin, MarketWatch

Germany's DAX reopens after connectivity glitch

European stock markets struggled for direction on Friday, as traders absorbed reports of another impending prominent departure from the U.S. administration and disappointing inflation data for the eurozone.

What are markets doing?

The Stoxx Europe 600 index was up 0.03% at 377.01, setting the benchmark on track for a 0.3% weekly decline.

Germany's DAX 30 index rose 0.4% to 12,389.66. Trading in Frankfurt opened about 40 minutes late on Friday (http://www.marketwatch.com/story/germanys-dax-to-reopen-after-unknown-glitch-2018-03-16) after a connectivity issue that prevented equal access for market participants to the trading system.

France's CAC 40 index fell 0.1% to 5,264.24, while the U.K.'s FTSE 100 was up 0.1% at 7,146.50 (http://www.marketwatch.com/story/ftse-100-trudges-higher-but-home-builders-keep-a-lid-on-bigger-gains-2018-03-16).

What is driving the market?

The indecisive trading action came as investors digested more turmoil in the U.S. administration. Media reports said President Donald Trump was planning to sack his national security adviser H.R. McMaster (http://www.marketwatch.com/story/trump-poised-to-push-mcmaster-out-of-the-white-house-2018-03-16), which would be the second high-profile firing from the White House this week. Secretary of State Rex Tillerson was fired on Tuesday and replaced with CIA Director Mike Pompeo.

Concerns over a possible trade war between the U.S. and key trading partners were still weighing on investors' minds as well, analysts said. The White House said on Wednesday it will seek to trim the U.S.'s trade deficit with China by $100 billion, using tariffs. The European Union, meanwhile, was working to get the bloc exempt from the tariffs.

Closer to home, eurozone inflation data were in focus. Eurostat, the statistical office of the European Union, said inflation in the currency union fell to 1.1% in February (http://www.marketwatch.com/story/eurozone-inflation-falls-misses-forecasts-2018-03-16), down from an initial estimate of 1.2% and weaker than the 1.3% recorded in January. The euro slightly pared its gain after the report, buying $1.2324, compared with as high as $1.2337 ahead of the data. The euro fetched $1.2306 late Thursday in New York.

Which stocks are in focus?

Shares of Siemens Healthineers AG rose 2.4% as the stock made its market debut on the Frankfurt Stock Exchange (http://www.marketwatch.com/story/siemens-healthineers-shares-rise-on-market-debut-2018-03-16-648579).

What are strategists saying?

"Traders are continuing to tread lightly as worries about a possible trade war are still doing the rounds. Traders are tip-toeing around this morning as there is talk that President Trump will target China with tariffs. While no new developments have taken place, some bargain hunters are stepping in," said David Madden, market analyst at CMC Markets UK, in a note.

(END) Dow Jones Newswires

March 16, 2018 06:50 ET (10:50 GMT)

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