EUROPE MARKETS: European Stocks Log Best Weekly Gain In 3 1/2 Months As Banks Gets A Bump From ECB
15 February 2019 - 7:16PM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
ECB's Coeuré talks of new TLTRO plan, lifting bank shares
European stocks finished sharply higher Friday, helping the
pan-European benchmark produce its best weekly gain since early
November, as investors cheered signs of progress on a U.S.-China
trade deal. Upbeat corporate quarterly results and a comments from
an ECB official helped to fortify gains on the day.
How are markets performing?
The Stoxx Europe 600 climbed 1.4% to close at 368.94, booking a
weekly gain of 3%, marking its best weekly climb since the week
ended Nov. 2, according to Dow Jones Market Data.
Within the region, France's benchmark CAC 40 index was the best
performer, rising 1.8% to end at 5,153.19, representing its highest
close since Oct. 16. For the week, the CAC surged 3.9%, marking its
best weekly gain since Feb. 16, 2018. Germany's DAX rose 1.9% to
11,299.80, and climbed 3.6% for the week--its best weekly rise in
11 months, and the U.K.'s FTSE climbed 0.6% to 7,236.68, help the
British benchmark record a third consecutive weekly gain, up
2.3%.
The euro was down 0.3% against the U.S. dollar at $1.1280, while
the British pound was steady at $1.2805.
What's driving the markets?
The banking sector jumped over 2% after European Central Bank
Executive Board member Benoît Coeuré reportedly said Friday
(https://twitter.com/mhewson_CMC/status/1096400494250131456) that
the eurozone's inflation path will be "shallower" and the central
bank will have to adapt. He said a new targeted longer-term
refinancing operation, TLTRO, was possible and the central bank was
discussing.
This week's round of trade talks wrapped up between the U.S. and
China on Friday, with negotiators citing progress on working toward
a memorandum of agreement that could serve the base for a bigger
deal. Talks will continue in Washington, D.C. next week, said a
statement from the White House
(http://www.marketwatch.com/story/us-china-trade-round-wraps-up-with-progress-toward-expected-memorandum-of-understanding-2019-02-15).
Investors were expressing some relief over the talks as markets
have been pinning gains on progress all week.
Data in the U.K. showed retail sales rebounded in January
(http://www.marketwatch.com/story/clothing-footwear-sales-boost-uk-retail-sales-2019-02-15)
driven by clothing and footwear and as stores cut their prices.
Elsewhere, data showed EU car registrations fell for a fifth
straight month, though the data still represented the highest
January volume on record since 2009. Volkswagen (VOW.XE) posted a
drop in January sales and signaled a tough year ahead, but shares
rose 1.8%.
Embattled Prime Minister Theresa May suffered a fresh rejection
in parliament
(http://www.marketwatch.com/story/brexit-brief-embattled-prime-minister-dealt-fresh-blow-by-own-mps-2019-02-15)
after pro-Brexit politicians refused to support her strategy to
withdrawal from the EU. Friction between the U.K. and Europe
appeared to worsen Friday after French European Affairs Minister
Nathalie Loiseau reportedly urged the U.K. to "hurry up" and decide
what they want to do because it is hurting Europe.
Spanish stocks rose despite political uncertainty. Prime
Minister Pedro Sánchez called snap general elections
(https://www.wsj.com/articles/spains-socialist-leader-calls-early-elections-the-third-poll-in-four-years-11550225482)
for late April, likely bringing his short-lived government to an
end after he lost critical support from Catalan separatist parties
for his budget.
What shares are active?
Telecom Italia SpA (TIT.MI) finished the day 6.4% higher after
the CDP, an Italian state-owned lender, said it would increase its
stake in the telecom provider
(http://www.marketwatch.com/story/telecom-italia-lifted-by-stake-increase-from-cdp-2019-02-15).
Scout24 AG (G24.XE) shares jumped 10.9%, making for the Stoxx
Europe 600's biggest gainer after the German online classified
company said its management and supervisory boards are supporting a
takeover offer
(http://www.marketwatch.com/story/scout24-jumps-on-private-equity-takeover-offer-2019-02-15)from
Hellman & Friedman and Blackstone Group LP (BX).
Standard Life (SLA.LN) shares slumped 6% after Mitsubishi UFJ
Financial Group Inc(8306.TO) unloaded its entire 5.9% stake
(http://www.marketwatch.com/story/standard-life-falls-on-mitsubishi-share-sale-2019-02-15)
in the asset manager for 349.3 million pounds ($448.0 million).
Allianz AG shares (ALV.XE) jumped over 3.2% after posting a
sharp gain in net profit
(http://www.marketwatch.com/story/allianz-net-profit-jumps-helped-by-lower-taxes-2019-02-15),
helped by lower taxes and higher operating profit.
Meanwhile, the Stoxx Europe 600 Banks Index , a popular index of
Europe's banking sector, closed up 2.7%, after Coeuré's comments,
which were seen as a positive to the banking sector.
(END) Dow Jones Newswires
February 15, 2019 14:01 ET (19:01 GMT)
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