EUROPE MARKETS: Europe Markets Retreat Ahead Of Central Bank Meetings
19 Junio 2019 - 05:21AM
Noticias Dow Jones
By Dave Morris
European markets did not continue the rally that began in Asian
markets as investors looked to central bank meetings in Europe and
the U.S.
How did markets perform?
The Stoxx 600 edged down 0.2% to 384. It rose Tuesday by
1.7%.
The U.K.'s FTSE 100 sank 0.4% to 7,411.8 after climbing 1.2%
Tuesday.
The pound rose 0.2% to $1.2582, erasing Tuesday's 0.1% loss.
In Germany, the DAX ticked 0.1% lower to 12,322.5. On Tuesday,
it jumped 2%.
France's CAC 40 moved 0.1% lower to 5,502.8, following Tuesday's
2.2% surge.
Italy's FTSE MIB was flat at 21,184.4. It increased 2.5%
Tuesday.
What's moving the markets?
U.S. President Donald Trump gave fresh hope to investors as he
announced on Twitter that he would meet Chinese President Xi
Jinping at the G-20 summit
(http://www.marketwatch.com/story/trump-today-president-sets-extended-meeting-with-xi-as-he-rebukes-draghi-over-possible-new-stimulus-2019-06-18)
next week in Osaka, Japan. Trade negotiations had been stalled
since mid-May after the U.S. accused China of reneging on aspects
of the deal that had already been agreed, with China firing back in
state media.
The U.S. Federal Reserve and the European Central Bank will both
make announcements about policy Wednesday, and while investors will
be eagerly awaiting both, those in Europe are already digesting ECB
President Mario Draghi's speech Tuesday signalling the bank stands
ready to introduce fresh stimulus measures if economic conditions
do not improve. The outlook for the Fed is more ambiguous, and the
week has seen intense debate about whether it will signal cuts to
its policy rate. While a survey of brokers by FactSet sees the Fed
introducing cuts at this meeting, some think it more likely the
central bank will keep its powder dry ahead of the G-20 summit.
RBC Capital Markets analysts wrote: "We find it hard to believe
that the Fed would cut rates if all of a sudden there were a
de-escalation of tensions with China and equities were trading at
all-time highs come the July confab. But a deterioration in trade
dealings would also increase the risk that the Fed's economic
growth profile for the second half of 2019 gets a downgrade and the
risk that financial conditions deteriorate."
In economic data, U.K. inflation came in slightly above
expectations. CPI core inflation for May was 1.7% higher year over
year, versus 1.6% expected. In Germany, PPI inflation missed the
consensus, rising 1.9% in May year over year, short of the 2.1%
expected.
Which stocks are active?
Saga PLC (SAGA.LN) shares plummeted 12.3% after the travel and
insurance company announced a trading update and warned that the
travel market is highly challenging due to political
uncertainty.
Russ Mould, investment director at AJ Bell, wrote: "Saga is
having a hard job digging itself out of a massive hole. Having
issued several profit warnings in the past few years, changed its
insurance strategy, and announced plans to part ways with its chief
executive, the business has come back with a patchy trading update.
In its defence, the turnaround plan is still fairly new and it will
take time to see if the strategy works."
British Airways parent International Consolidated Airlines Group
SA (IAG.LN) announced at the Paris Air Show that it had ordered 200
of Boeing's troubled Max 737 jets. The move is a massive vote of
confidence in the aircraft model, which was grounded following two
crashes involving the same model. Shares in IAG were down 4.4%.
(END) Dow Jones Newswires
June 19, 2019 06:06 ET (10:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
Gráfica de índice
De Feb 2024 a Mar 2024
FTSE 100
Gráfica de índice
De Mar 2023 a Mar 2024