Europe Markets

Nov. 21, 2018, 2:54 p.m. EST

Total, HSBC help European stocks claw back lost ground

Italy lags gains as EU set to sanction government over budget

By Barbara Kollmeyer, MarketWatch , Emily Horton

An earlier version of this article stated that U.S. benchmarks were in a bear market, defined as a decline of at least 20% from a recent peak. The Nasdaq Composite Index is in correction, having declined 10% from its Aug. 29 peak, but neither the Dow nor the S&P 500 have closed in correction or a bear market recently. The error has been corrected.


Bloomberg

European stocks finished higher Wednesday, clawing back lost ground from a global equity rout driven by Wall Street a day earlier as oil and banking stocks pitched in to boost the Stoxx Europe 600 index.

How are the markets performing?

The Stoxx Europe 600 (STOXX:XX:SXXP)  rose 0.5% to 352.81, after closing down 1.2% on Tuesday.

The FTSE 100  rose 1.5% to close at 7,050.23, while the German DAX 30 (NAS:DAX)  climbed 1.6% to finish at 11,244.71 and the French CAC 40 index (TSX:CA:PX) rose 1% to 4,975.50.

The British pound (XTUP:GBPUSD) was last trading at $1.2800 up from $1.2789 late Tuesday in New York. The euro (XTUP:EURUSD) rose to $1.1410 on Wednesday, versus $1.1370 late Tuesday.

What drove stocks?

Doubts about holiday sales and the chip sector drove the brutal U.S. tech stock selloff and it bled into the European markets. Meanwhile, Italy was in the spotlight after the European Union said it may sanction the country’s government over a budget that breaches EU rules.

What stocks were active?

As oil prices rebounded along with broader markets, shares of heavily-weighted Total SA   ended 1.1% higher and Royal Dutch Shell Group PLC   gained 2.3%.

Banking major HSBC Holdings PLC (LON:UK:HSBA)   (LON:UK:HSBA)  rose 2.7%, while Banco Santander SA (NYS:SAN) (MCE:ES:SAN)  added 1.8%. Shares of Deutsche Bank AG (FRA:DE:DBK)  rose 2%.

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