Europe markets were down as a Brexit extension, central bank reassurance and economic data in line with expectations had next to no positive impact on investors.
How did markets perform?
The Stoxxx 600
SXXP, -0.07%
fell 0.3% to 385.5, wiping out Wednesday’s gain of 0.3%.
The FTSE 100
UKX, -0.08%
was down a mere 0.1% to 7,416.7. It closed down almost 0.1% Wednesday.
The pound
GBPUSD, -0.0306%
declined 0.1% to $1.3077, giving back some of its Wednesday gain of 0.3%.
Germany’s DAX
DAX, -0.11%
DAX, +0.50%
dipped 0.4% to 11,862.5, not quite eliminating Wednesday’s 0.5% increase.
In Italy, the FTSE MIB
I945, -0.39%
was down 0.7% to 21,524.1, after ending Wednesday flat.
In France, the CAC 40
PX1, +0.45%
was the lone exception among major indexes, rising 0.2% to 5,458.6 on the heels of a 0.3% gain Wednesday.
The euro
EURUSD, +0.0532%
was up nearly 0.1% to $1.1277 after falling 0.2%.
What’s moving the markets?
Various asset classes across Europe reacted to a busy news day with stoicism. There was no relief rally in U.K. equities nor in the pound, despite the threat of a no-deal Brexit being kicked down the road to October 31 by European Union leaders on Wednesday night. With U.K. Prime Minister Theresa May asking for a short extension, French President Emmanuel Macron demanding a short one and European Council President Donald Tusk recommending they take their time, the EU split the difference, prolonging the uncertainty for business and highlighting the absence of a way out of the mess. Little wonder markets tuned out of the whole thing.
In central bank news, European Central Bank President Mario Draghi was content to let his March speech keep on ringing in investors’ ears, as he abstained Wednesday from offering new information about potentially introducing tiered rates. Instead, after the ECB confirmed it would keep its policy rate unchanged, Draghi emphasized that the European economy wasn’t yet in such dire straits that such policies were necessary. Tiered rates would exempt certain types of bank deposits from negative rates and stimulate lending, but some central bankers in Europe have criticized the idea as favoring certain types of lenders over others. In the U.S., the March Federal Open Market Committee (FOMC) minutes were also free of surprises.
Most of Thursday’s Consumer Price Inflation (CPI) data came in as analysts’ had expected. Inflation rose 2.3% in China and 1.3% in Germany, in line with predictions, while in France it was slightly above expectations at 0.8% versus a 0.5% consensus.
Which stocks are active?
In the U.K., the main beneficiaries of Brexit relief were the beaten down airlines, as travelers could book holidays without fear of being stranded by no deal (at least for a few months). EasyJet PLC
EZJ, +4.55%
led the way rallying 4%, while International Consolidated Airlines
IAG, +4.39%
rose 3.9%, TUI AG
TUI, +3.38%
was up 2.9% and Ryanair Holdings
RY4C, +1.84%
limbed 1.8%.
Luxury stocks climbed on LVMH Moët Hennessy Louis Vuitton SE
MC, +4.15%
earnings, as first quarter sales beat estimates in what investors expect will be a bellwether for the sector. LVMH was up 3%, Christian Dior SE
CDI, +3.02%
rose 2.5% and Moncler SpA
MONC, +2.37%
was 1.6% higher.
Listed hedge-fund manager Man Group PLC
EMG, -0.64%
was down 0.5% after reporting first quarter earnings. Its assets under management increased to $112.3 billion because of positive investment performance, but investors in the shares were likely less thrilled about the $700 million in net outflows.
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Source : MTV
