9th Aug 2018 17:11
BRUSSELS/FRANKFURT/PARIS (Alliance News) - The European markets ended Thursday's session with mixed results.
The markets fluctuated between small gains and losses throughout the session, as trade war concerns continue to weigh on sentiment.
The Chinese Ministry of Commerce's announcement of 25% tariff on USD16 billion worth of US goods.
The goods being targeted by China include large passenger cars and motorcycles as well as various fuels and fiber optical cables.
The announcement by China came after the US finalized a list of approximately USD16 billion worth of Chinese imports that will be subject to a 25% tariff.
The second tranche of tariffs, which are due to take effect on August 23, follows the first tranche of tariffs on approximately USD34 billion of Chinese imports that went into effect on July 6.
The European Central Bank said uncertainties related to global factors, notably the threat of protectionism remain prominent.
In the Economic Bulletin, released Thursday, the ECB said the risk of persistent heightened financial market volatility continues to warrant monitoring.
Nonetheless, the bank said risks surrounding the euro area growth outlook were broadly balanced.
The pan-European Stoxx Europe 600 index advanced 0.1%. The Euro Stoxx 50 index of eurozone bluechip stocks ended flat, while the Stoxx Europe 50 index, which includes some major UK companies, lost 0.2%.
The DAX of Germany climbed 0.3% and the CAC of France was flat. The FTSE 100 of the UK declined 0.5% and the SMI of Switzerland finished lower by 0.3%.
In Frankfurt, Reinsurance giant Hannover Re rallied 2.8% and sportswear firm Adidas soared 9.4% after confirming their full-year outlook.
TUI sank 2.5%. The travel and tourism company backed guidance after reporting a drop in third-quarter underlying earnings before interest, tax and amortization.
Copper producer Aurubis lost 3.6% after its second-quarter profit came in below expectations.
Merck KGaA rose 0.2% after its adjusted core earnings fell 14% in the second quarter.
In London, Legal & General finished unchanged. The insurance, pension and investment group reported a 9% drop in first-half pretax profit as market volatility weighed on the performance of its investment portfolio.
Randgold Resources climbed 1.8% after its second quarter net profit declined 38% on lower revenue.
Real estate services provider Savills tumbled 4.0% after reporting a drop in half-year profit.
Staffing firm Adecco dropped 2.0% in Zurich after its second quarter net profit fell to EUR170 million from EUR192 million last year.
Zurich Insurance gained 0.3%. The company reported a 19% increase in first-half profit, helped by lower expenses and improved underwriting in its property and casualty business.
China's inflation accelerated on higher food and non-food prices, but remained well within the government's target and producer price inflation slowed in July, giving space for monetary policy adjustment.
Consumer price inflation rose to 2.1% in July from 1.9% in June, data from the National Bureau of Statistics showed Thursday.
A similar higher rate was last seen in March. The rate was forecast to rise marginally to 2.1%.
First-time claims for US unemployment benefits unexpectedly edged lower in the week ended Saturday, according to a report released by the Labor Department on Thursday. The report said initial jobless claims dipped to 213,000, a decrease of 6,000 from the previous week's revised level of 219,000.
Economists had expected jobless claims to inch up to 220,000 from the 218,000 originally reported for the previous week.
A report released by the Labor Department on Thursday showed producer prices unexpectedly came in unchanged in the month of July. The Labor Department said its producer price index was unchanged in July after rising by 0.3% in June. Economists had expected producer prices to increase by 0.2%.
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