17th Sep 2018 17:07
BRUSSELS/FRANKFURT/PARIS (Alliance News) - The European markets fluctuated between small gains and losses throughout Monday's session and ended the day with mixed results.
Investors were in a cautious mood due to ongoing global trade concerns.
US President Donald Trump reportedly intends to proceed with plans to impose tariffs on USD200 billion worth of Chinese goods as early as today.
China has pledged to retaliate to any new tariffs imposed by the US, with reports suggesting the communist country could go beyond raising tariffs on US imports and restrict exports of goods critical to US manufacturing.
The International Monetary Fund urged UK Prime Minister Theresa May to strike a deal with the EU, warning that a "no-deal" Brexit would most likely be disorderly and carry substantial costs for the British economy.
"Overcoming differences and reaching a deal with the EU will be crucial to avoid a no-deal Brexit, which would impose very large costs on the UK economy," IMF Managing Director Christine Lagarde said.
The pan-European Stoxx Europe 600 index advanced 0.1%. The Euro Stoxx 50 index of eurozone bluechip stocks remained flat, while the Stoxx Europe 50 index, which includes some major UK companies, was also unchanged.
The DAX of Germany dropped 0.2% and the CAC of France fell 0.1%. The FTSE 100 of the UK was flat and the SMI of Switzerland finished higher by 0.4%.
In Frankfurt, Deutsche Bank rose 0.8% on a report that the bank is planning to transfer a major portion of its assets from London to Frankfurt post-Brexit.
In Paris, supermarket chain Casino rallied 7.6% after its parent Rallye signed a confirmed credit facility for an amount of EUR500 million with five of its core banks.
In London, AstraZeneca dropped 0.4% after announcing the results of the third phase trial of a three-drug combination for treating chronic obstructive pulmonary disease.
Retailer Hennes & Mauritz AB jumped 17% in Stockholm after posting encouraging third-quarter results.
Biotech firm Argenx slid 0.5% in Brussels after reporting positive top-line results from a trial of its Efgartigimod drug.
Eurozone inflation slowed as estimated in August, final data from Eurostat revealed Monday.
Harmonized inflation came in at 2% in August versus 2.1% in July, which was the highest since December 2012. The rate came in line with the estimate published on August 31.
UK house prices recovered in September, property website Rightmove reportedly said Monday. House prices gained 0.7% month-on-month in September after a 2.3% decrease.
UK households' perceptions of financial wellbeing remained close to survey-high in September, data from IHS Markit showed Monday. The household finance index held steady at 45.9 in September, which was the second highest score since the survey began in February 2009.
Pointing to a slower pace of growth, the Federal Reserve Bank of New York released a report on Monday showing a much bigger than expected decrease by its index of regional manufacturing activity in the month of September.
The New York Fed said its general business conditions index fell to 19.0 in September from 25.6 in August, although a positive reading continues to indicate growth in regional manufacturing activity. The index had been expected to dip to 23.0.
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