EUROPE MARKETS: European Stocks Run Into The Red As Wall Street Sets Course For Pullback

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02/13/2018 | 11:13 am

By Carla Mozee, MarketWatch

Advances for miners, travel companies fail to lift Stoxx 600 out of the red

European stocks fell Tuesday, as advances for mining and travel shares weren't enough to guide the market toward a second consecutive win.

How markets are moving

The Stoxx Europe 600 index shed 0.1% to 372.62, with the telecom and technology groups losing the most. But the basic materials and consumer services sectors were moving higher. On Monday, the benchmark climbed 1.2% , the first win in three sessions.

Germany's DAX 30 index fell 0.3% to 12,245.82, and France's CAC 40 index slipped 0.1% to 5,132.10. The U.K.'s FTSE 100 was up 0.2% to 7,191.24.

The euro bought $1.2326, up from $1.2393 late Monday in New York.

What's driving the market

The volatility that's been shoving major stocks markets into correction territory was creeping back into the European markets, indicating that investors are still wrestling with concerns about rising inflation and higher bond yields.

U.S. stocks climbed Monday, but that was followed up in Asia with Japan's Nikkei Average falling while Hong Kong stocks surged 1.3%. Ahead of Wall Street's open on Tuesday , U.S. stocks were pulling back, with Dow futures dropping nearly 100 points.

But gains for metals prices such as copper and gold helped lift up shares of European-listed mining companies. Metals prices denominated in dollars found strength on the back of a softening in the U.S. dollar .

What strategists are saying

"European markets are failing to follow through on yesterday's bounce and a decent performance overnight in Asia," said Neil Wilson, senior market analyst at ETX Capital, in a note. "A lack of volume yesterday on Wall Street suggests there is not a huge amount of interest in this recovery just yet and may be a signal that this is not a reversal in a secondary downtrend."

Stock movers

TUI AG climbed 3% after the vacation services company posted a narrower net loss of 99.6 million euros ($112.7 million) for the first quarter and backed its full-year guidance

In the mining group, Anglo American PLC (>> Anglo American) rose 1.4% and Glencore PLC (>> Glencore) moved up 1%.

Kering SA shares (>> Kering) fell 1.2% even as the French parent of luxury goods maker Gucci posted net profit for 2017 that more than doubled from a year earlier, to 1.79 billion euros ($2.20 billion).

Economic data

In the U.K., a reading on January inflation showed annual inflation remained at 3% in January, compared with estimated reading of 2.9%. Inflation is well above the Bank of England's target of 2%.

Stocks mentioned in the article : Anglo American, Kering, Glencore
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