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June 17, 2019, 6:52 a.m. EDT

Europe markets quiet as Fed meeting in focus

Deutsche Bank, Lufthansa among shares most active

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By Dave Morris


Associated Press
The head offices of Deutsche Bank, left, and Commerzbank, right.

European markets were unusually calm Monday as investors contemplated whether central banks would save them from the impacts of the continuing U.S.-China trade battle.

How did markets perform?

The Stoxx 600 /zigman2/quotes/210599654/delayed XX:SXXP -2.90%  was flat at 378.9, after declining 0.4% Friday.

The U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -3.83%  was also flat at 7,345.6. On Friday it moved down 0.3%.

The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.1375%  was likewise flat at $1.2592. It sank Friday by 0.6%.

In Germany, the DAX /zigman2/quotes/210597999/delayed DX:DAX -3.94%  ticked up 0.1% to 12,107.7 It slid 0.6% Friday.

France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -4.30%  reached 5,377.3, an increase of 0.2% after decreasing 0.1% Friday.

Italy’s FTSE MIB /zigman2/quotes/210598024/delayed IT:I945 -2.97%  rose 0.2% to 20,661.1. On Friday it nudged 0.1% lower.

What’s moving the markets?

U.S. Commerce Secretary Wilbur Ross played down the prospect of a China-U.S. trade deal emerging from the G-20 summit in Japan if U.S. President Donald Trump and Chinese President Xi Jinping ultimately do hold talks. Ross said the “most that might come” is new ground rules for the negotiations or possibly a schedule of future discussions.

Investors will be watching and positioning themselves ahead of a busy week for central bank meetings, as some fear trade tensions are nudging the global economy toward recession. Others, however, are skeptical that the U.S. Federal Reserve will cut its policy rate Wednesday, as unemployment is at record lows and inflation is running close to the Fed’s target.

“Investors need to be asking themselves what the Fed is seeing that they are not, especially as the last two-rate cutting cycles from the American central bank initially brought holders of U.S. equities absolutely no joy at all,” said Russ Mould, investment director for AJ Bell.

The Bank of England and the Bank of Japan are also set to hold meetings.

Which stocks are active?

Deutsche Bank AG /zigman2/quotes/205584254/delayed DE:DBK -4.77%  shares rose after a report in the Financial Times that the beleaguered lender is moving to set up a ‘bad bank’ holding up to €50 billion worth of poorly performing assets such as certain derivatives. The bank is expected to restructure its trading operations, shrinking or closing them outside continental Europe. Shares moved up 2%.

Deutsche Lufthansa AG /zigman2/quotes/205496028/delayed DE:LHA -5.95%  slashed its projections for 2019, citing overcapacity and stiff competition in the air travel market. Its shares plunged 11.4%, and affected sentiment among other companies in the sector. EasyJet PLC /zigman2/quotes/202825892/delayed UK:EZJ -7.95%  sank 5.2% while Ryanair Holdings PLC /zigman2/quotes/205429530/delayed IE:RY4C -4.13%  declined 4.2%.

Royal Mail PLC /zigman2/quotes/204213037/delayed UK:RMG +2.56%  ticked upward by 2.4% after Bernstein analysts upgraded its shares to outperform and highlighted the strength of its European parcels business, GLS. Shares over the past 52 weeks have cratered 59.2%.

/zigman2/quotes/210599654/delayed
XX : STOXX
310.77
-9.29 -2.90%
Volume: 0.00
April 1, 2020 5:50p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
5,454.57
-217.39 -3.83%
Volume: 1.62M
April 1, 2020 4:57p
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/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.2383
+0.0017 +0.1375%
Volume: 0.0000
April 1, 2020 8:32p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
9,544.75
-391.09 -3.94%
Volume: 132,862
April 1, 2020 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
4,207.24
-188.88 -4.30%
Volume: 141,856
April 1, 2020 6:05p
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/zigman2/quotes/210598024/delayed
IT : Borsa Italiana
16,544.97
-505.97 -2.97%
Volume: 0.00
April 1, 2020 5:36p
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/zigman2/quotes/205584254/delayed
DE : Germany: Frankfurt
5.55
-0.28 -4.77%
Volume: 164,679
April 1, 2020 8:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€417,912
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/zigman2/quotes/205496028/delayed
DE : Germany: Frankfurt
8.13
-0.51 -5.95%
Volume: 309,907
April 1, 2020 8:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€264,465
loading...
/zigman2/quotes/202825892/delayed
UK : U.K.: London
525.60 p
-45.40 -7.95%
Volume: 2.94M
April 1, 2020 4:35p
P/E Ratio
5.98
Dividend Yield
8.35%
Market Cap
£2.26 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205429530/delayed
IE : Ireland: Dublin
8.83
-0.38 -4.13%
Volume: 2.11M
April 1, 2020 4:30p
P/E Ratio
9.53
Dividend Yield
N/A
Market Cap
€10.04 billion
Rev. per Employee
€530,769
loading...
/zigman2/quotes/204213037/delayed
UK : U.K.: London
128.40 p
+3.20 +2.56%
Volume: 6.99M
April 1, 2020 4:35p
P/E Ratio
3.97
Dividend Yield
5.84%
Market Cap
£1.25 billion
Rev. per Employee
£63,484
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