EUROPE MARKETS: European Stocks Hover At Week Lows As Investors Eye U.S. Health Care Vote
March 23 2017 - 6:34AM
Dow Jones News
By Sara Sjolin, MarketWatch
Pound jumps after U.K. retail sales beat forecasts
European stocks fought for direction on Thursday, with investors
cautious of making any big moves amid growing concerns the new U.S.
administration will struggle to push through promised pro-business
reforms.
The Stoxx Europe 600 index traded 0.1% higher at 374.32, but
seesawed between small gains and losses.
The index closed down 0.4% to finish at 374.03 on Wednesday, the
lowest close since March 14, as the "Trump trade" that has pushed
stock markets higher in recent months started to dwindle. This
comes as President Donald Trump faces significant issues with
getting approval for his health-care, prompting investors to
question his ability to follow through on other promises, such as
tax cuts and $1 trillion in infrastructure spending.
A vote on the Republican Party's health-care bill is set for
Thursday.
"Without this, Trump can't implement the more exciting
pro-growth stimulus policies markets have priced in since his
election. Doubts about a favorable voting outcome are the reason
for the recent market wobble, although a solid finish on Wall
Street restored confidence," analysts at Accendo Markets said in a
note.
U.S. stocks closed mostly higher on Wednesday
(http://www.marketwatch.com/story/selloff-in-us-stocks-set-to-pick-up-again-as-trump-trade-dwindles-2017-03-22),
rebounding from a sharp selloff on Tuesday. U.S. stock futures
pointed to a muted open on Thursday.
Movers: Next PLC (NXT.LN) jumped 6.9% after the fashion retailer
maintained its final dividend at GBP1.05 and confirmed its guidance
for the current year
(http://www.marketwatch.com/story/fashion-retailer-next-posts-drop-in-profit-2017-03-23).
Gemalto NV (GTO.AE) fell 3.6%, building on a 17% loss from
Wednesday when the digital security firm cut its financial
guidance.
Indexes: The U.K.'s FTSE 100 index fell 0.1% to 7,314.48.
Investors in London were still digesting the terrorist attack in
London on Wednesday afternoon, which left four people, including
the attacker, dead and dozens injured.
Read:U.K. police arrest 7 in London terror-attack probe: report
(http://www.marketwatch.com/story/uk-police-make-arrests-linked-to-westminster-attack-report-2017-03-23)
The pound jumped as high as $1.2528, from $1.2484 late Wednesday
in New York, after data showed U.K. retail sales jumped 1.4% in
February
(http://www.marketwatch.com/story/uk-retail-sales-surge-14-in-february-2017-03-23).
That's more than the 0.4% increased forecast by analysts. The pared
has pared the gain to $1.2516.
Germany's DAX 30 index rose 0.2% to 11,924.27, while France's
CAC 40 lost 0.2% to 4,985.91.
(END) Dow Jones Newswires
March 23, 2017 06:19 ET (10:19 GMT)
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