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June 14, 2018, 2:22 p.m. EDT

European stocks log best day in 2 months as ECB outlines plans to end QE

Chinese growth concerns were the one big drag on the market and mining stocks

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By Carla Mozee, MarketWatch

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Investors also took notice of a decision by the People’s Bank of China to stand pat on interest rates, breaking a pattern of raising rates in the footsteps of the U.S. central bank.

The Stoxx Europe 600 Basic Materials Index /zigman2/quotes/212670217/delayed XX:SXPP +0.96%  reversed course to end up 1.2%. Copper producer Antofagasta PLC /zigman2/quotes/200173667/delayed UK:ANTO +4.05% ended the session down 1.5%, off its lows of the day, while shares of Centamin PLC /zigman2/quotes/210323628/delayed UK:CEY +0.89% edged 0.2% lower, also cutting a steeper drop and Glencore PLC /zigman2/quotes/201400686/delayed UK:GLEN +0.42%   /zigman2/quotes/209462106/delayed GLCNF -2.88%  pivoted in to the green, closing 0.1% higher.

As expected, the U.S. Federal Reserve on Wednesday lifted its benchmark federal-funds rate by a quarter-percentage point—to a range of 1.75% to 2%. It also signaled it will raise rates a total of four times in 2018, compared with a previous outlook for three hikes. Wednesday’s rate increase was the second of the year.

What strategists are saying

“The shock announcement that the ECB will keep rates unchanged at least until mid-2019 has caused the euro to spiral lower. Whilst the information itself shouldn’t shock markets, the decisive comments today isn’t the usual style we see Mr. Draghi epitomize at monthly meetings,” said Alex Lydall, head of corporate FX at Foenix Partners, in a note.

“Although negative connotations are attached to the new rate information, Draghi did also note that asset purchases will extend to December, but only at a rate of 15 billion euros a month. This news will fill traders with confidence that the eurozone is stepping out of its troubled shadow, albeit at snail’s pace,” he added.

Stock movers

Aveva Group PLC /zigman2/quotes/202038414/delayed UK:AVV -0.70%  rallied 12%. The industrial-software company said it was maintaining its dividend even as fiscal 2018 pro forma pretax profit fell 34%, stemming in part from reverse acquisition by France’s Schneider Electric SE /zigman2/quotes/200216351/delayed FR:SU +1.02%

Unilever PLC /zigman2/quotes/205449809/delayed UK:ULVR +0.53%   /zigman2/quotes/204685760/composite UL +1.10%  fell 2.8%. The consumer-goods maker’s CFO Graeme Pitkethly warned sales growth in the first half of 2018 will be below the full-year target of 3% to 5% , but maintained sales guidance for the year. Pitkethly also said it is “extremely unlikely” Unilever will maintain a primary listing in London after its move to consolidate in Rotterdam.

Shares of European payment processor Adyen NV /zigman2/quotes/205351021/delayed NL:ADYEN +0.87%  fell 3.7% to €438, briefly reaching a high of €484 on the Euronext Amsterdam exchange Wednesday doubled during that session. The shares had priced at €240 each.

Read: Adyen IPO: 5 things to know about the PayPal rival

Rolls-Royce Holdings PLC shares jumped 6.5% after the British aircraft-engine maker said it would cut 4,600 jobs in its latest round of job reductions.

Economic data

Retail sales for the U.K. in May surpassed consensus forecasts, as a stretch of good weather and Royal Wedding celebrations gave a fillip to spending in food and household goods stores.

Sales were up 1.3% on the month, the Office for National Statistics said. A print of 0.5% was expected. They were up 3.9% year-over-year, compared with 2.4% expected in a FactSet consensus estimate.

/zigman2/quotes/212670217/delayed
XX : STOXX
570.69
+5.42 +0.96%
Volume: 0.00
Oct. 22, 2021 12:11p
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/zigman2/quotes/200173667/delayed
UK : U.K.: London
1,488.50 p
+58.00 +4.05%
Volume: 231,830
Oct. 22, 2021 11:11a
P/E Ratio
19.37
Dividend Yield
3.50%
Market Cap
£14.41 billion
Rev. per Employee
£172,054
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/zigman2/quotes/210323628/delayed
UK : U.K.: London
97.54 p
+0.86 +0.89%
Volume: 988,580
Oct. 22, 2021 11:08a
P/E Ratio
10.78
Dividend Yield
6.68%
Market Cap
£1.14 billion
Rev. per Employee
£206,605
loading...
/zigman2/quotes/201400686/delayed
UK : U.K.: London
370.10 p
+1.55 +0.42%
Volume: 5.37M
Oct. 22, 2021 11:11a
P/E Ratio
33.86
Dividend Yield
2.35%
Market Cap
£49.75 billion
Rev. per Employee
£765,499
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/zigman2/quotes/209462106/delayed
US : U.S.: OTC
$ 5.07
-0.15 -2.88%
Volume: 132,576
Oct. 21, 2021 3:40p
P/E Ratio
34.11
Dividend Yield
3.16%
Market Cap
$68.73 billion
Rev. per Employee
$981,641
loading...
/zigman2/quotes/202038414/delayed
UK : U.K.: London
3,709.00 p
-26.00 -0.70%
Volume: 32,257
Oct. 22, 2021 11:11a
P/E Ratio
269.55
Dividend Yield
0.97%
Market Cap
£11.20 billion
Rev. per Employee
£174,553
loading...
/zigman2/quotes/200216351/delayed
FR : France: Euronext Paris
141.96
+1.44 +1.02%
Volume: 178,651
Oct. 22, 2021 12:11p
P/E Ratio
27.28
Dividend Yield
1.83%
Market Cap
€79.43 billion
Rev. per Employee
€199,156
loading...
/zigman2/quotes/205449809/delayed
UK : U.K.: London
3,884.00 p
+20.50 +0.53%
Volume: 466,982
Oct. 22, 2021 11:11a
P/E Ratio
21.35
Dividend Yield
3.80%
Market Cap
£98.17 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204685760/composite
US : U.S.: NYSE
$ 53.38
+0.58 +1.10%
Volume: 2.63M
Oct. 21, 2021 4:00p
P/E Ratio
21.69
Dividend Yield
3.43%
Market Cap
$135.62 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205351021/delayed
NL : Netherlands: Euronext Amsterdam
2,714.50
+23.50 +0.87%
Volume: 15,126
Oct. 22, 2021 12:11p
P/E Ratio
226.13
Dividend Yield
N/A
Market Cap
€82.78 billion
Rev. per Employee
€2.08M
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Carla Mozée is a reporter for MarketWatch, based in London. Follow her on Twitter @MWMozee.

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