Europe close: Stocks end near session lows despite US tax reform optimism

Alexander Bueso WebFG News | 20 Oct, 2017 17:49 | | |


European stocks finished near their worst levels of the day despite optimism regarding prospects for the US economy.

At the closing bell, the benchmark Stoxx 600 was up 0.26% or 1.02 points at 390.13, alongside a gain of 0.01% or 1.18 points to 12,991.28 on the Dax while the FTSE Mibtel was advancing 0.97% or 213.64 points to 22,346.85.

In parallel, euro/dollar was off by a notable 0.55% to 1.1780 as hopes built up for tax cuts on the other side of the Pond.

"Europe's markets have rebounded after yesterday’s losses on reports out of the US that a budget blueprint had been agreed for 2018 that increased the probability that we could see a new tax reform package passed in the coming months.

"We also saw a slightly more positive tone out of Brussels with respect to the Brexit talks after German Chancellor Angela Merkel acknowledged that the EU side also needed to move on its negotiating position in the Brexit talks. This would appear to be a significant shift of tone at a time when the EU stance has previously shown no signs of compromise," said Michael Hewson, chief market analyst at CMC Markets UK.

On the economic front, factory gate prices in the euro area's largest economy accelerated to a 3.1% clip year-on-year in September versus a rate of gain of 2.6% in the month before (consensus: 2.9%), according to the Ministry of Finance.

In parallel, the European Central Bank reported that the Eurozone's current account surplus increased from an upwardly revised €31.5bn in July to €33.3bn for August.

German lender Commerzbank denied a report in daily Handlesblatt accrding to which digital projects had been put on the backburner as a result of its weak third quarter earnings.

Software AG was on the backfoot after posting a fall in third quarter core profits, although management reiterated their full-year guidance to markets.

Air Berlin and EasyJet are expected to announce the purchase by the latter of as many as 25 A320 jets, according to reports.

Shares of Fiat was bouncing back from a sharp fall the day before on worries about the manufacturer's sports car sales in China.

More news

00:20 US close: Wall Street mixed ahead of Thanksgiving holiday

Wall Street finished mixed on Wednesday, following the record highs set the day before and amid lighter-than-usual trading volumes ahead of the Thanksgiving holiday on Thursday.

22 Nov Jefferies upgrades Kingfisher to 'buy', raises target price

Analysts at Jefferies upgraded home improvement products retailer Kingfisher (KGF) to 'buy' from its previous 'hold' rating on Wednesday, raising its target price from 310p to 400p along the way.

22 Nov Europe close: German stocks give back gains amid political impasse

Stocks ended the session modestly lower as traders waited for the release of the minutes of the US Federal Reserve's last rate-setting meeting in the evening and monitored the news-flow out of Germany, amid speculation that a 'grand coalition' between Germany's two main political parties, the centre-right CDU/CSU and the Socialist SPD, may yet be possible.

22 Nov Lebanon prime minister Hariri retracts resignation

Saad al-Hariri has revoked his resignation as Lebanon's prime minister, according to a local news report on Wednesday.

22 Nov Budget: Planning probe spooks builders, mixed reaction for stamp duty cut

A range of new housing policies were proposed by Chancellor Philip Hammond in his Budget statement, including more funds for smaller housebuilder, a probe into potential holding of land by major housebuilders and a stamp duty cut for first-time buyers.

22 Nov US open: Shares hold ground ahead of FOMC minutes

Wall Street is holding its ground following the record highs set the day before, albeit amid lighter than usual trading volumes ahead of the Thanksgiving Holiday on Thursday, with investors looking to the release of the minutes of the most recent meeting of the Federal Open Market Committee.

22 Nov London close: Stocks higher on UK budget

Shares closed higher on Wednesday as investors sifted through corporate releases as well as the Autumn Budget.

22 Nov FTSE 250 movers: Qinetiq boosted by Berenberg note as Thomas Cook tanks

The FTSE 250 index was up around 0.50% on the day in which Chancellor Philip Hammond revealed his budget for the upcoming year.

22 Nov Higher margins offset declining sales volumes at Cambria

Motor dealer Cambria Automobiles managed to successfully grow profit and revenue throughout the financial year, as per-unit profits counteracted a slide in sales volumes.

22 Nov First production at Texas asset transforms Pantheon Resources into full-cycle energy and power business

Oil and gas exploration firm Pantheon Resources announced "another year of progress" in its full-year results on Wednesday, as it completed the transition from a pure-play exploration company to a full-cycle energy and power business.