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European shares slip, FTSE 100 at record high
January 9, 2017 / 8:34 AM / 10 months ago

European shares slip, FTSE 100 at record high

LONDON (Reuters) - European shares edged lower on Monday, while a rise among basic resources stocks helped FTSE 100 .FTSE index hit a record high.

A man shelters under an umbrella as he walks past the London Stock Exchange in London, Britain August 24, 2015. REUTERS/Suzanne Plunkett

The pan-European STOXX 600 index was down 0.5 percent.

The FTSE 100 .FTSE gained 0.3 percent to 7,239.26 points, putting it on track for its tenth straight session of gains.

“I think the appetite is there to keep (the FTSE) pushing north. The week’s earnings are going to provide a boost, I think commodity prices seem to be holding up quite nicely, which is good for the mining. The financials are still buoyed,” Mike van Dulken, head of research at Accendo Markets, said.

The basic resources .SXPP sector rallied 0.1 percent.

A 5.1 percent fall in Deutsche Lufthansa’s shares (LHAG.DE) weighed on travel and leisure .SXTP stocks.

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, January 9, 2017. REUTERS/Staff/Remote

Telecoms .SXKP were also on the back foot, down 1.4 percent and the biggest sectoral faller, with Vodafone (VOD.L) dropping 1.8 percent after UBS cut its target price on the stock.

Germany’s Fresenius Medical (FMEG.DE) fell 6.3 percent after it and U.S. rival DaVita Inc (DVA.N) received subpoenas from federal prosecutors investigating their ties with a charity that helps patients pay for kidney dialysis.

British mid cap betting firm William (WMH.L) fell 3.8 percent after reporting profit at the bottom of its guidance range.

Among top gainers, French retailer Casino Guichard (CASP.PA) rose nearly 5 percent following an upgrade from Bank of America Merrill Lynch, citing a simplification of the group’s corporate structure as a positive for the stock.

“Casino is unrivalled when compared to peers in terms of future GDP and retail sales growth, in our view, with each of its subsidiaries having strong market positions,” analysts at BofA Merrill Lynch said in a note.

Auto makers were also in focus, with shares in Volkswagen (VOWG_p.DE) rising 4.4 percent after the carmaker said brand sales rose 2.8 percent in 2016, driven by China which is its largest sales market.

Shares in Fiat Chrysler (FCHA.MI) gained 2.8 percent following news that it will invest 1 billion to modernize two plants in the U.S. Midwest and create 2,000 jobs.

Reporting by Kit Rees, Editing by Vikram Subhedar and John Stonestreet

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