Europe close: Shares finish session near day's lows

Alexander Bueso WebFG News | 10 Nov, 2017 17:36 | | |

cbcapitoliowashington short

Stocks on the Continent ended lower, clocking in with some of their steepest weekly losses since August over disappointment on the outlook for prompt passage of US tax reforms.

At the closing bell, the benchmark Stoxx 600 had slipped 0.35% or 1.38 points to 388.69, alongside a 0.42% fall on the German Dax to 13,127.47, while Italy's FTSE Mibtel had shed 0.36% or 80.52 points to stand at 22,560.79.

Meanwhile, the euro-dollar cross was ahead by 0.12% to 1.1657.

From a sector standpoint, automobile makers were among the weakest areas of the market, with the Stoxx 600 gauge of auto&parts manufacturers losing 0.66% to finish at 606.48.

Europe's main equity benchmarks reeled after the US Senate's proposed tax reform plans showed that it wanted to push a cut to the country's main corporate tax rate into 2019.

"An early bounce in stocks has fizzled out this morning, confirming that risk-off sentiment remains dominant. The twists and turns in Congress regarding the administration's tax plan are hard to follow, but the overall impression is that we won't get much progress on reform before the Thanksgiving recess begins. For a market that had invested great hope in the plan, this is a heavy blow.

"The rally had been looking increasingly precarious, as breadth deteriorated over the past week, with yesterday's drop an inevitable consequence of underlying weakness," said Chris Beauchamp at IG.

Italian industrial output shrank by 1.3% month-on-month in September, according to ISTAT, led by a fall in manufacturing production of 1.3% and underwhelming economists who had forecast a drop of 0.3%.

Friday's data also largely eliminated almost all of the up-side risk to Barclays's forecast for GDP growth of 0.4% quarter-on-quarter for the three months to September.

To take note of, a decision from Standard&Poor's on Italy's sovereign debt rating was expected after the market close.

French industrial production on the other hand was marginally stronger than forecast during that same month, INSEE said, rising by 0.6% on the month (consensus: 0.5%), which Barclays said pointed to GDP growth of 0.5% on the quarter continuing over the last three months of 2017.

On the corporate front, insurer Allianz reported a 17% drop in third quarter net income to €1.6bn, which was in-line with analysts' forecasts, alongside a €2bn share repurchase programme.

Steel pipe manufacturer Vallourec lifted its financial guidance for 2017 again on the back of higher oil and gas sales Stateside and cost cuts.

More news

17 Nov Europe close: Stocks slip going into the weekend

Stocks reversed early gains as investors opted to play it safe going into the weekend and the euro edged a tad higher on the back of the political gyrations on Capitol Hill.

17 Nov Europe open: Stocks start slightly higher, analysts wary

Stocks have started the morning trading slightly higher, tracking overnight gains on Wall Street but analysts are worried about buying into Thursday's bounce.

17 Nov London close: Stocks finish week on down note

London's top flight index slipped on Friday, but managed to finish well-off its lows of the session despite renewed Brexit angst as the pound gave back early gains.

17 Nov Kingfisher gets RBC upgrade as 'reasons to be cheerful' in France

DIY retailer Kingfisher has more "reasons to be cheerful" thanks to an improving French outlook, analysts at RBC Capital Markets said on Friday, while clothes seller Supergroup remains "compelling" but its shares have gained a lot in recent weeks.

17 Nov NAV on the rise as Alpha Real Estate Trust turns focus to build-to-rent market

Real estate investment group Alpha Real Trust saw its net asset value (NAV) rise in its first half of trading as it moved to make further investments in build-to-rent projects.

17 Nov Pacific Industrial & Logistics completes sale of Bedford asset

Industrial and logistics-focussed real estate investment trust Pacific Industrial & Logistics has completed the sale of an asset located at Hammond Road, Bedford, for a total consideration of £5.8m, it announced on Friday.

17 Nov DP Poland cuts ribbon on 50th Polish Domino's store

DP Poland, which holds the exclusive master franchise for the Domino’s Pizza brand in Poland, celebrated the opening of its 50th location in the country on Friday.

17 Nov Mercia Technologies makes new investment into Aston EyeTech

National investment group Mercia Technologies has made a new direct investment into Aston EyeTech - a spinout from Aston University, Birmingham - which has developed a range of proprietary hardware and software products in ocular care, it announced on Friday.

17 Nov SimiGon receives final approval for $2m Israeli Air Force order

Modelling, simulation and training solutions provider SimiGon has now received final regulatory approval for a $2m purchase order received from the Israeli Air Force, initially announced on 20 June 2016, it confirmed on Friday.

17 Nov Agriterra losses grow after 'subdued' interest in corn products

Agricultural investment group Agriterra saw losses widen in the first half of its trading year as subdued demand for its maize flour products slashed revenues by more than a third.