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* STOXX 600 ends at one-week low
* UK's FTSE 100 rises as sterling loses more ground
* Edenred falls after UBS downgrade
* RWE slumps as Innogy unit debuts
By Sudip Kar-Gupta
LONDON, Oct 7 Continental European stock markets
fell on Friday, with vouchers company Edenred and
airline easyJet among the worst performers, although a
new slump in sterling propped up Britain's FTSE 100.
The pan-European STOXX 600 index ended down by 0.9
percent at a one-week low. The STOXX 600 has fallen by around 7
percent since the start of 2016.
"European stocks look utterly uninteresting to me at the
moment. Corporate profits are weak and the economy remains weak
as well," said Andreas Clenow, chief investment officer at
Swiss-based ACIES Asset Management.
Edenred fell 7.2 percent after UBS cut its rating on the
stock to "neutral" from "buy". EasyJet fell 3.3 percent after
broker downgrades following its profit warning on Thursday.
However, the FTSE 100 managed to gain 0.6 percent, since the
slump in sterling should benefit exporters and help the index's
international companies .
Sterling slid on new concern that British Prime Minister
Theresa May's government will back a "hard Brexit" where Britain
leaves the European Union's single market in order to impose
controls on immigration.
That could hinder inward and outward trade and constrict the
foreign investment needed to fund Britain's current account
deficit, one of the biggest in the developed world.
Concern over European banks were also weighing on stocks,
said Francois Savary, chief investment officer at Geneva-based
fund management and consultancy firm Prime Partners.
Deutsche Bank edged up 0.5 percent after sources
said Qatari investors who own the largest stake in Deutsche Bank
do not plan to sell their shares and could consider buying more
if the embattled German bank decides to raise capital.
Its shares however remain near record lows as the bank is
fighting a fine of up to $14 billion from the U.S. Department of
Justice over the alleged mis-selling of mortgage backed
Investors are also concerned about bad debts in the Italian
"Europe seems to offer value, but concerns over the
financial system and political uncertainties - particularly with
the French and German elections next year - call for caution,"
said Savary, who has reduced his European equity allocation.
RWE fell 7.4 percent after shares in its Innogy
debuted on the stock market struggling for most of the
session to move above their issue pricey, reflecting the limited
growth potential for its businesses.
(Additional reporting by Atul Prakash and Danilo Masoni;
Editing by Andrew Heavens)