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 pause for breath; Carillion rivals gain

Published 01/15/2018, 03:43 AM
Updated 01/15/2018, 03:50 AM
© Reuters. The German share price index, DAX board, is seen at the stock exchange in Frankfurt

© Reuters. The German share price index, DAX board, is seen at the stock exchange in Frankfurt

LONDON (Reuters) - European stocks got off to a sluggish start on Monday following two weeks of gains, with cyclical stocks among the biggest decliners, while M&A remained in focus.

Shares in some competitors of Carillion (L:CLLN) rose after the long-struggling construction and support services company collapsed, with banks refusing to lend it any more money.

“People will pick up business and for some it will be good. JV arrangements will also get triggered where they take on the majority share of the contracts," said a sector analyst at a UK broker, citing Serco in healthcare.

Among Carillion competitors, Serco jumped 3.4 percent and Interserve 1.9 percent, Balfour Beatty (L:BALF) 0.2 percent and Kier Group (L:KIE) 0.3 percent.

While the STOXX has seen a strong start to 2018 and has held at its highest levels since August 2015, weakness among banking stocks and energy kept the index in negative territory, while a stronger euro also added pressure.

The pan-European STOXX 600 (STOXX) index was down 0.1 percent in early deals, while Euro zone blue chips (STOXX50E) also declined 0.1 percent. So-called cyclical stocks, whose profits are most sensitive to the strength of the economy, have been the best equity sector performers this year.

Finnish mining equipment maker Metso (HE:METSO) was the biggest faller on the STOXX, dropping 9.5 percent after its fourth-quarter earnings missed expectations.

Meanwhile GKN (L:GKN) saw its shares rise 2.2 percent after suitor Melrose (L:MRON) said it planned to meet shareholders of the British automotive and aerospace equipment maker following a rejected takeover offer.

© Reuters. The German share price index, DAX board, is seen 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.