Bulletin
Investor Alert

April 16, 2019, 5:40 a.m. EDT

German optimism, China stimulus kicks Europe markets into gear

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    STOXX Europe 600 Index (SXXP)
  • X
    DAX (DAX)
  • X
    Global X DAX Germany ETF (DAX)

or Cancel Already have a watchlist? Log In

By Dave Morris


Bloomberg News
German online retailer Zalando was among Europe’s top performing shares on Tuesday, leading a buoyant market as economic sentiment improved

A fresh injection of liquidity by the Chinese central bank and positive expectations in Germany boosted markets Tuesday.

How did markets perform?

The Stoxx 600 /zigman2/quotes/210599654/delayed XX:SXXP -2.90%  was 0.3% higher at 389.3, following Monday’s close up 0.2%.

Germany’s DAX /zigman2/quotes/210597999/delayed DX:DAX -3.94%   /zigman2/quotes/210223310/composite DAX -4.83%  index led the major regional exchanges, rising 0.7% to 5,518 following after climbing 0.2% Monday.

The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.1459% ticked gently lower to $1.1292, down 0.1% following Monday’s flat close.

In Italy, the FTSE MIB /zigman2/quotes/210598024/delayed IT:I945 -2.97%  was also higher at 21,965.1, adding 0.3% Tuesday to Monday’s gain of 0.2%.

France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -4.30%  was up 0.1% to 5,516.7, with animal spirits perhaps subdued by the catastrophic Notre Dame cathedral fire. It had also risen 0.1% Monday.

The U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -3.83%  rose 0.2% to 7,451.1 on Tuesday, after closing flat Monday.

The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.2264%  was 0.1% lower at $1.3087, giving back Monday’s gain of 0.1%.

What’s moving the markets?

Investors were buoyed by positive signals on the global economy. China’s gross domestic product (GDP) will be the focus Wednesday, but Tuesday has its share of economic data points to keep an eye on. U.K. ILO unemployment was slightly better than expected, coming in at 3.9% for February versus analyst consensus of 4%. In Germany, however, the ZEW Economic Sentiment survey for April blew past expectations at 3.1%, as analysts were expecting 1.9%.

(Investors will also be monitoring U.S. industrial production and NAHB housing index figures, arriving Tuesday afternoon in Europe.)

Central bank action was the primary market driver following the Asia session. Minutes from the monetary policy meeting of the Reserve Bank of Australia’s board showed discussion of a potential rate cut on the horizon, if signs of a slowing economy emerged—namely if unemployment rose and inflation didn’t. Central bank the People’s Bank of China injected 40 billion yuan worth of liquidity into the markets after abstaining for 18 trading days, sending equities higher.

Which stocks are active?

Miners rallied as Rio Tinto PLC /zigman2/quotes/208934945/delayed UK:RIO -3.00%  announced that it had marked down its 2019 target for iron ore production, shifting supply dynamics for the metal. Cyclones hitting operations in Australia’s Pilbara region were to blame. Rio was down 0.1%, while fellow iron ore miner Evraz PLC /zigman2/quotes/202291633/delayed UK:EVR -2.33%  was up 1.8%.

German online retailer Zalando /zigman2/quotes/205496028/delayed DE:LHA -5.95%  SE shares jumped 10.9% on the back of an announcement that its first quarter earnings would be above market expectations. According to the company, the January to March period is typically marked by discounting, so the earnings projection came as something of a surprise.

A profit warning by Deutsche Lufthansa AG /zigman2/quotes/209028521/delayed DE:ZAL -1.41%  landed after market hours Monday night, saying its first quarter loss would be worse than it had originally predicted and that revenues were “down significantly”. After falling sharply, Lufthansa’s shares reversed and climbed 0.8%. That didn’t undo the damage to other European airline stocks, however. Airplane maker Airbus SE /zigman2/quotes/208224336/delayed FR:AIR -12.03%  was down 0.4% and Dassault Aviation SA /zigman2/quotes/207053075/delayed FR:AM -3.00%  dropped 0.5%.

/zigman2/quotes/210599654/delayed
XX : STOXX
310.77
-9.29 -2.90%
Volume: 0.00
April 1, 2020 5:50p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
9,544.75
-391.09 -3.94%
Volume: 132,862
April 1, 2020 6:30p
loading...
/zigman2/quotes/210223310/composite
US : U.S.: Nasdaq
$ 19.60
-0.99 -4.83%
Volume: 7,641
April 1, 2020 4:15p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.0948
-0.0016 -0.1459%
Volume: 0.0000
April 1, 2020 9:02p
loading...
/zigman2/quotes/210598024/delayed
IT : Borsa Italiana
16,544.97
-505.97 -2.97%
Volume: 0.00
April 1, 2020 5:36p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
4,207.24
-188.88 -4.30%
Volume: 141,856
April 1, 2020 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
5,454.57
-217.39 -3.83%
Volume: 1.62M
April 1, 2020 4:57p
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.2394
+0.0028 +0.2264%
Volume: 0.0000
April 1, 2020 9:02p
loading...
/zigman2/quotes/208934945/delayed
UK : U.K.: London
3,607.00 p
-111.50 -3.00%
Volume: 3.72M
April 1, 2020 4:35p
P/E Ratio
9.44
Dividend Yield
9.72%
Market Cap
£60.42 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202291633/delayed
UK : U.K.: London
226.20 p
-5.40 -2.33%
Volume: 2.82M
April 1, 2020 4:35p
P/E Ratio
13.10
Dividend Yield
26.82%
Market Cap
£3.34 billion
Rev. per Employee
£140,781
loading...
/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/209028521/delayed
DE : Germany: Frankfurt
34.23
-0.49 -1.41%
Volume: 408.00
April 1, 2020 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€344,958
loading...
/zigman2/quotes/208224336/delayed
FR : France: Euronext Paris
52.20
-7.14 -12.03%
Volume: 5.47M
April 1, 2020 5:37p
P/E Ratio
N/A
Dividend Yield
3.16%
Market Cap
€46.42 billion
Rev. per Employee
€476,596
loading...
/zigman2/quotes/207053075/delayed
FR : France: Euronext Paris
726.50
-22.50 -3.00%
Volume: 9,194
April 1, 2020 5:38p
P/E Ratio
8.47
Dividend Yield
N/A
Market Cap
€6.23 billion
Rev. per Employee
€445,382
loading...

Get news alerts on Euro and British Pound — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.