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Nov. 3, 2016, 1:00 p.m. EDT

Stoxx Europe 600 ends barely higher, but breaks 8-day losing streak

Bank stocks lend support

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By Sara Sjolin and Victor Reklaitis, MarketWatch


Shutterstock/Pack-Shot

Europe’s main stock benchmark closed a touch higher on Thursday, with banks providing support after a dose of upbeat results and a U.K. court ruling viewed as favorable for the country’s financial sector.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.73%  edged up just 0.01 point to end at 331.56, breaking an eight-session losing streak—its longest since October 2014. The index couldn’t hold a more sizable intraday gain, having traded as high as 334.05 during the session, according to FactSet data.

Bank joy: Banking shares moved higher in the wake of encouraging quarterly reports from Société Générale SA and ING Groep NV, plus a ruling that the British government can’t trigger the Brexit process without signoff from parliament.

SocGen /zigman2/quotes/206663756/delayed FR:GLE +0.08%  jumped 5.5% after the French lender posted better-than-expected third-quarter profit. Its results were buoyed by a strong performance from its investment banking business, which offset a decline in retail banking revenue.

ING /zigman2/quotes/203351007/delayed NL:INGA -0.53%   /zigman2/quotes/203566071/composite ING -0.50%  rose 2.3% after a 27% rise in third-quarter profit. The Dutch banking giant said it benefited from growth in loans and deposits.

British banks gained as the court decision somewhat allayed fears the country is heading for a so-called hard Brexit that could hurt the financial industry. Analysts said there might now be a softening in talks around leaving the European Union, helping to potentially keep the U.K. in the EU’s single market even after an exit from the bloc.

Shares of Royal Bank of Scotland Group   finished up 6.1%, Barclays PLC /zigman2/quotes/208409333/delayed UK:BARC -0.37%   /zigman2/quotes/206581728/composite BCS -0.64% rose 1.8%, and Lloyds Banking Group PLC /zigman2/quotes/202285510/delayed UK:LLOY +0.39%   /zigman2/quotes/200709414/composite LYG -0.46%  was 1.6% higher.

See: Brexit ruling: 5 things you need to know

And read: ‘Fresh battle over Brexit’—analysts react to U.K. high court ruling

Most other banks also stepped higher, sending the Stoxx Europe 600 banks index /zigman2/quotes/210599339/delayed XX:SX7P +0.19%  up 0.8%.

Credit Suisse Group AG /zigman2/quotes/205269278/delayed CH:CSGN +0.83%   /zigman2/quotes/202835784/composite CS +0.44% , however, bucked the positive trend in the sector, falling 7.1%. The loss came as the Swiss bank reported a steep drop in profit, but beat analyst forecasts.

The Fed and Trump factors: The Stoxx Europe 600 initially traded lower Thursday as investors reacted to the U.S. Federal Reserve’s decision late Wednesday to keep rates on hold and followed developments in the presidential campaign.

Fears that Republican candidate Donald Trump will win the election next week have taken a toll on global stock markets this week, analysts said. He is viewed as likely to inject more uncertainty into world affairs, and big investors generally don’t like unpredictability.

“Markets have reacted with cautiousness to political uncertainty that is seemingly flying in on multiple fronts. Investors are not panicking but have been paralyzed into inaction over the endless possible outcomes of the US election and Brexit,” said Jasper Lawler, a CMC Markets analyst, in a note.

Other movers: Shares of Air France-KLM SA /zigman2/quotes/205396176/delayed FR:AF +1.06%  added 6.1% after the airline said profit rose in the first quarter as lower fuel costs offset pressure from terrorism fears and losses from strikes.

Tate & Lyle PLC /zigman2/quotes/205109332/delayed UK:TATE +1.96%  jumped 3.7% after the sugar producer reported an 83% rise in first-half pretax profit.

Inmarsat PLC  rallied 10%. The satellite-services provider backed its full-year revenue outlook after earnings and sales rose in the third quarter.

Beiersdorf AG /zigman2/quotes/205000568/delayed XE:BEI +0.82%  put on 4.6% after the consumer-products group, known for its Nivea skin-care line, raised its full-year profit guidance.

BOE’s Super Thursday: The Bank of England was busy on its “Super Thursday,” keeping interest rates unchanged as expected, while also playing down the chances of a further cut in rates.

The BOE’s signals, combined with U.K. court ruling, helped to send to the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.0961% leaping to $1.2430, up from $1.2302 late Wednesday in New York.

National indexes: The FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +1.19%  fell 0.8% to end at 6,790.51, weighed down by sterling’s strength. A burlier pound tends to weigh on the FTSE because the index’s many export-dependent companies that benefit from a weaker currency.

France’s CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 +0.20% edged down 0.1% to close at 4,411.68, and Germany’s DAX 30 /zigman2/quotes/210597999/delayed DX:DAX +0.72%  dropped 0.4% to 10,325.88.

/zigman2/quotes/210599654/delayed
XX : STOXX
431.10
+3.11 +0.73%
Volume: 0.00
May 20, 2022 11:03p
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/zigman2/quotes/206663756/delayed
FR : France: Euronext Paris
24.50
+0.02 +0.08%
Volume: 4.65M
May 20, 2022 5:35p
P/E Ratio
3.85
Dividend Yield
6.74%
Market Cap
€18.69 billion
Rev. per Employee
€371,419
loading...
/zigman2/quotes/203351007/delayed
NL : Netherlands: Euronext Amsterdam
9.41
-0.05 -0.53%
Volume: 15.57M
May 20, 2022 5:37p
P/E Ratio
N/A
Dividend Yield
6.59%
Market Cap
€35.44 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203566071/composite
US : U.S.: NYSE
$ 9.98
-0.05 -0.50%
Volume: 5.07M
May 20, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
8.39%
Market Cap
$37.42 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208409333/delayed
UK : U.K.: London
152.72 p
-0.56 -0.37%
Volume: 41.05M
May 20, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
3.93%
Market Cap
£25.58 billion
Rev. per Employee
£276,176
loading...
/zigman2/quotes/206581728/composite
US : U.S.: NYSE
$ 7.79
-0.05 -0.64%
Volume: 5.76M
May 20, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
4.01%
Market Cap
$31.90 billion
Rev. per Employee
$377,068
loading...
/zigman2/quotes/202285510/delayed
UK : U.K.: London
43.60 p
+0.17 +0.39%
Volume: 138.39M
May 20, 2022 4:35p
P/E Ratio
5.84
Dividend Yield
4.59%
Market Cap
£30.15 billion
Rev. per Employee
£724,994
loading...
/zigman2/quotes/200709414/composite
US : U.S.: NYSE
$ 2.15
-0.01 -0.46%
Volume: 10.94M
May 20, 2022 4:00p
P/E Ratio
5.22
Dividend Yield
4.74%
Market Cap
$37.59 billion
Rev. per Employee
$997,086
loading...
/zigman2/quotes/210599339/delayed
XX : STOXX
131.21
+0.25 +0.19%
Volume: 0.00
May 20, 2022 11:03p
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/zigman2/quotes/205269278/delayed
CH : Switzerland: SWX
CHF 6.58
+0.05 +0.83%
Volume: 8.24M
May 20, 2022 5:30p
P/E Ratio
N/A
Dividend Yield
1.52%
Market Cap
CHF16.91 billion
Rev. per Employee
CHF469,308
loading...
/zigman2/quotes/202835784/composite
US : U.S.: NYSE
$ 6.78
+0.03 +0.44%
Volume: 14.13M
May 20, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.51%
Market Cap
$17.34 billion
Rev. per Employee
$511,175
loading...
/zigman2/quotes/205396176/delayed
FR : France: Euronext Paris
4.30
+0.05 +1.06%
Volume: 5.80M
May 20, 2022 5:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€2.76 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205109332/delayed
UK : U.K.: London
754.50 p
+14.50 +1.96%
Volume: 896,444
May 20, 2022 4:35p
P/E Ratio
13.69
Dividend Yield
4.79%
Market Cap
£3.00 billion
Rev. per Employee
£467,012
loading...
/zigman2/quotes/205000568/delayed
XE : Germany: Xetra
93.92
+0.76 +0.82%
Volume: 161,579
May 20, 2022 6:30p
P/E Ratio
33.39
Dividend Yield
0.75%
Market Cap
€23.67 billion
Rev. per Employee
€370,837
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.2481
-0.0012 -0.0961%
Volume: 0.0000
May 22, 2022 4:44p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,389.98
+87.24 +1.19%
Volume: 722,321
May 20, 2022 4:56p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,285.24
+12.53 +0.20%
Volume: 92,863
May 20, 2022 6:05p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,981.91
+99.61 +0.72%
Volume: 83,084
May 20, 2022 6:30p
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Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin. Victor Reklaitis is a London-based markets writer for MarketWatch. Follow him on Twitter @VicRek.

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