Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European shares recover after weak data wobble

Published 02/15/2019, 06:08 AM
Updated 02/15/2019, 06:08 AM
© Reuters. Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt

© Reuters. Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt

By Tom Wilson

LONDON (Reuters) - European shares recovered on Friday after weak U.S. and Chinese economic data earlier sent global equity markets into a dive.

After opening lower, Europe's STOXX 600 nudged up 0.2 percent despite weakness in German equities. Demand for safe-haven currencies remained strong.

Stocks fell after a U.S. report that retail sales had dropped in December to their lowest since 2009 and by data on Chinese producer prices, which were little changed for a seventh straight month in January.

Germany's main stock index, which is exposed to the Chinese economy because of its large number of exporters, was down 0.2 percent by 0932 GMT. It had fallen as much as 0.5 percent.

European car stocks, a bellwether for the continent's economy, fell 1 percent as sales dropped and the deadline approached for a U.S. Commerce Department that could lead to the imposition of tariffs.

"After hot markets of late, a little bit of cold water has been poured on bourses over the last 24 hours," said Deutsche Bank's strategist Jim Reid.

The slow start in European shares reflected nerves across global equity markets. MSCI's world equity index, which tracks shares in 47 countries, was flat.

Emerging markets were set for their first back-to-back weekly loss since late last year. The MSCIEF index of emerging market stocks dropped 0.8 percent.

Investors in Asia took fright early after the U.S. retail sales report. Asia-Pacific shares outside Japan fell 1.1 percent as market in Seoul, Tokyo and Shanghai all lost ground.

Worries about the United States, which many considered a bright spot in the world economy, offset some optimism over trade talks in Beijing between the United States and China.

The two top U.S. negotiators were due to meet Chinese President Xi Jinping on Friday, but no decision has been taken to extend a March 1 deadline for a deal.

U.S. Treasury Secretary Steven Mnuchin said in a tweet on Friday that he and U.S. Trade Representative Robert Lighthizer had "productive meetings" with China's Vice Premier Liu He.

SAFE HAVEN

The Japanese yen and other safe-haven currencies made gains as the market awaited developments in the trade talks. The dollar remained fairly robust in spite of the U.S. retail figures, trading up 0.2 percent at 97.1 against a basket of major currencies.

The euro was 0.2 percent lower at $1.1278 and headed for a second week of losses. It is down by 1.7 percent so far this year after discouraging economic data from the euro zone.

The 10-year U.S. Treasuries yield fell to 2.6483 percent, wiping out most of its rise this week.

Commodities diverged from wider market trends. Crude oil briefly reached 2019 highs above $65 per barrel after OPEC-led supply cuts and a bigger-than-expected cut by Saudi Arabia this week encouraged investors.

The global Brent benchmark last traded at $64.75, up 18 cents, or 0.28 percent, from the last close. It has risen 4.5 percent this week.

For Reuters Live Markets blog on European and UK stock markets, please click on: [LIVE/]

© Reuters. Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.