Stocks – Europe Up; FTSE Underperforms as Pearson Weighs

This post was originally published on this site
© Reuters. © Reuters.

By Peter Nurse – European stock markets traded up after the open Thursday, taking their lead from the positive close on Wall Street overnight after the signing of the trade deal between the U.S. and China.

At 04:15 ET (0910 GMT), the traded 43 points, or 0.3% higher. France’s was up 18 points, or 0.3%. The pan-eurozone index, the rose 10 points, or 0.3%., while the in the U.K. underperformed, dropping 4 points, or 0.1%, weighed by disappointing corporate news.

Shares in Pearson (LON:) slumped 10% as the publisher announced the departure of its chief financial officer and a weak performance in its U.S. education division. It also said it expects profits to fall next year.

Shares in Whitbread (LON:) also dropped 3.7% after the owner of the Premier Inn hotel chain reported weak revenue in its fiscal third quarter, blaming Brexit-related uncertainty. Recruitment specialist Hays also fell 2.8% after its fiscal second quarter was hit by French strikes, U.K. elections and Australian bushfires.

In Europe, shares in utility RWE AG (DE:) climbed 1.7% following reports Thursday that the German government plans to compensate the utility with around 2.6 billion euros for costs related to the country’s planned coal exit.

On Wednesday, the U.S. had risen 0.2%, and the tech heavy added 0.1% and the jumped 0.3%, closing in record territory above 29,000. That accompanied the signing of the much-anticipated phase one trade agreement between the U.S. and China, pausing their two-year trade war that had weighed on global growth.

Looking ahead, the European Central Bank is due to publish the account of its last monetary policy meeting, held in December, at 7:30 AM ET (12:30 GMT). At the meeting, the first presided over by new President Christine Lagarde, the Governing Council decided to leave its key rates and quantitative easing program unchanged.

Elsewhere, oil climbed, boosted by the signing of the trade deal as well as U.S. crude inventories falling by more than expected. These inventories fell by 2.5 million barrels, compared with analyst expectations of a drop of 500,000 barrels, according to data from the Energy Information Administration, an agency of the U.S. Department of Energy.

At 4:10 AM ET (09:10 GMT), futures traded 0.8% higher at $58.31 and the international benchmark contract rose 1.1% to $64.70. for February delivery on New York’s COMEX rose 0.1% to $1,555.25.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment