Sat. Nov 23rd, 2024

European Stocks Close Lower on Cautious Trading

By Investors Hub

European stocks have moved mostly lower in cautious trading on Wednesday as hawkish comments from Federal Reserve Chairman Jerome Powell coupled with weak economic data from China and Japan dented investors’ risk appetite.

Disappointing regional data releases, declining oil prices and mixed corporate earnings also weighed on the markets.

While the U.K.?s FTSE 100 Index is just below the unchanged line, the German DAX Index is down by 0.2 percent and the French CAC 40 Index is down by 0.3 percent.

Germany’s forward-looking consumer sentiment index dropped 0.2 points to 10.8 in March, as the political turbulence surrounding the formation of a stable, viable government in Berlin unsettled consumers, survey data from the market research group GfK showed.

A gauge of German unemployment also fell notably in February, while French consumer spending declined for the second straight month in January, defying economists’ expectations for an increase.

Eurostat figures showed that inflation across the 19-country euro zone fell in February for the third straight month.

Bayer shares have tumbled after the German drug company warned of delays for its merger deal with Monsanto after reporting a drop in fourth-quarter net profit due to a U.S. tax overhaul.

Media firm ITV has also slumped in London after reporting a decrease in annual pre-tax profits due to ongoing political uncertainty in the U.K.

Taylor Wimpey has moved to the downside after the homebuilder reported a 6.9 percent decline in 2017 pre-tax profits amid increased political and economic risks.

Meanwhile, Dialog Semiconductor has soared, as the chipmaker’s net income for the fourth quarter jumped 57 percent as a result of lower income tax expenses and a one-time gain resulting from the fair valuation of the Energous warrants.

Dutch supermarkets and eCommerce company Ahold Delhaize N.V. has also rallied after reporting strong fourth quarter net income growth.

By Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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