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European stocks set for best week since July as investors shrug off North Korea worries
September 15, 2017 / 7:36 AM / 2 months ago

European stocks set for best week since July as investors shrug off North Korea worries

LONDON, Sept 15 (Reuters) - European shares dipped on Friday as another missile launch by North Korea dented investors’ appetite for riskier banking and mining stocks, though the index remained on track for its strongest week since July with markets increasingly shrugging off geopolitical turmoil.

The pan-European STOXX 600 dipped 0.2 percent as investors followed Asian markets down with a more muted reaction to this latest flare-up in aggression on the Korean peninsula.

Euro zone stocks fell 0.2 percent, while Britain’s FTSE dropped 0.4 percent to a new four-month low.

European stocks were still headed for their strongest week in two months, fresh from Thursday’s five-week high as they recovered from a summer dip.

Banks fell 0.5 percent, among the biggest fallers as investors shed the most risky assets. Miners sank 0.7 percent.

Broker rating changes moved some of the top gainers and losers.

PostNL rose 3.9 percent with traders citing a Goldman Sachs upgrade to a “buy”, while Moeller-Maersk fell 2.4 percent after BAML downgraded it to “underperform”.

Cruise provider Carnival dropped 2.6 percent after Credit Suisse cut its rating to “neutral”, citing increasing threats to demand in the top three cruise markets: the Caribbean, Mediterranean and China.

Goldman Sachs strategists said European stocks continue to attract investors concerned about rich valuations elsewhere, with strong inflows from international and European investors.

Euro zone stocks have outperformed the broader STOXX index year-to-date despite analysts and investors predicting the stronger euro may dent company earnings.

Reporting by Helen Reid, Editing by Kit Rees

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