NEW YORK, (APP/AFP) – Europe’s stocks struggled to find a clear direction ahead of decisions by key central banks, while US investors weighed up a long-sought mega-merger between Bayer and Monsanto.
After three days in the red, London’s benchmark FTSE 100 index posted
modest gains, helped by steady jobless data and a rebound in mining stocks, a day before the Bank of England meets.
“It might be in for a bit more movement tomorrow as investors await the latest (likely unchanged) rate vote and statement from the Bank of England,” Spreadex’s analyst Connor Campbell said in a note to investors.
Frankfurt’s DAX 30 nudged downwards at closing, with shares in German
chemical giant Bayer only winning 0.3 percent despite initially surging more
than two percent.
After a months-long pursuit, Bayer said it had agreed to buy the
controversial US seeds and pesticides firm Monsanto for an improved offer of
$66 billion.
Shares of Monsanto rose just 0.6 percent to $106.76. well below the $128 share price embedded in the deal. Analysts viewed the gap as a sign the market thinks antitrust regulators could kill the deal.
In Paris, the CAC 40 was down for the fifth session in a row, with analysts pointing to caution ahead of a US Federal Reserve meeting next week amid uncertainty of a rate rise.
“The market remains anxious and caution has been predominant since the disappointment from the European Central Bank’s status quo,” said Alexandre Baradez, analyst at IG France.
US stocks finished mostly lower, with petroleum-linked shares retreating on falling oil prices.
But Apple was a bright spot, jumping 3.5 percent after Sprint and T-Mobile said orders were strong for the tech giant’s latest iPhones. The new smartphones will be available to consumers on Friday.
– Luxury woes –
===============
Europe’s luxury goods sector lost some shine after a profits warning from Swiss group Richemont, which owns top global brands including Cartier. Shares in Richemont lost 3.9 percent in Zurich.
Hermes meanwhile slumped 8.8 percent in Paris as a cautious outlook from the French group offset its solid results.
“Richemont and Hermes have both delivered downbeat trading updates and their stocks are being sold off in sharp fashion as a result,” said Neil
Wilson, market analyst at ETX Capital.
France’s upscale chain Galeries Lafayette also said it had seen a 15
percent drop in foreign shoppers at its flagship Paris store in the first half of 2016 after the November terror attacks.
The profit warnings “come after a woeful summer for the sector, with
Burberry and Swatch among several notable marques seeing sales and profits
falling”, added Wilson, who pointed to sliding demand in Asia.
– Key figures 2100 GMT –
========================
New York – DOW: DOWN 0.2 percent at 18,034.77 (close)
New York – S&P 500: DOWN 0.1 percent at 2,125.77 (close)
New York – Nasdaq: UP 0.4 percent at 5,173.77 (close)
London – FTSE 100: UP 0.1 percent at 6,673.31 (close)
Frankfurt – DAX 30: DOWN 0.1 percent at 10,378.40 (close)
Paris – CAC 40: DOWN 0.4 percent at 4,370.26 (close)
EURO STOXX 50: DOWN 0.2 percent at 2,969.48 (close)
Tokyo – Nikkei 225: DOWN 0.7 percent at 16,614.24 (close)
Shanghai – Composite: DOWN 0.7 percent at 3,002.85 (close)
Hong Kong – Hang Seng: DOWN 0.1 percent at 23,190.64 (close)
Euro/dollar: UP at $1.1250 from $1.1217 late Tuesday
Pound/dollar: UP at 1.3238 from 1.3196
Dollar/yen: DOWN at 102.38 yen from 102.59