Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

European stocks hold onto four-month highs as trade talks progress

Stock Markets Feb 18, 2019 05:07AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt
 
DBKGn
+1.20%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WMB
+0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
STOXX
-0.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Helen Reid

LONDON (Reuters) - Fresh from touching their highest level in four months on Friday, European stocks stalled on Monday as investors cashed in their gains ahead of further U.S.-China trade talks in Washington this week.

The STOXX 600 hovered around flat by 0950 GMT, steadying at its highest level since Oct 10 as company results on the whole looked good but falls in autos stocks limited gains.

French car parts maker Faurecia climbed 1.9 percent after saying it hoped to outperform the market this year and reported margin expansion, though it warned of negative auto production growth in general.

"2019 guidance is more cautious on growth, but resilient margins and FCF should limit any downgrades," said Jefferies analysts.

Faurecia's gain bucked the trend in the autos sector which fell 0.7 percent, lagging the market after data showed car sales in China fell for a seventh straight month.

Investors in the auto sector were also on tenterhooks after the U.S. Commerce Department sent its report on national security and car imports to President Trump, setting the stage for possible tariffs.

Leading the market, Wirecard shares jumped 12.2 percent after German market regulator BaFin banned the establishment or increase of short positions in the stock.

"I am in two minds as to how much volatility will be removed," said Mark Taylor, sales trader at Mirabaud Securities.

"The next few days will tell if longs are still looking for levels to sell and won't feel they're battling with shorts... And, of course, any existing shorts are now limited in their actions."

UK-listed consumer goods firm Reckitt Benckiser provided the biggest boost to the market, up 4 percent after reporting higher-than-expected Q4 sales growth, helped by improvements in both its health and home and hygiene businesses.

Chipmaker AMS rose 3.1 percent after an article https:// by Barrons saying the company is trying to diversify away from the slowing iPhone segment into other consumer areas and industrial applications.

The bank index inched up 0.2 percent, having risen sharply on Friday after European Central Bank board member Benoit Coeure said a new round of cheap multi-year loans to banks was possible.

That big reaction showed how desperate equity investors are for central banks to do something to help, Ian Williams (NYSE:WMB), strategist at Peel Hunt said.

In other negative moves, Casino shares fell 2.3 percent after Deutsche Bank (DE:DBKGn) cut its rating to "hold" from "buy".

Overall analysts have been increasingly downbeat about earnings potential in Europe and globally as macroeconomic data continued to disappoint.

"Looking at where global risks are, it seems the euro zone is more dangerous than China or the US in terms of what you should be worrying about. It's been where macro surprises have been more dramatic," said Peel Hunt's Williams.

Analysts have slashed their estimates for 2019 earnings growth for MSCI Europe from 9.5 percent in early November to 6.5 percent now.

European stocks hold onto four-month highs as trade talks progress
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email