European Markets Stabilize On Shanghai Rebound

Lucy Stoeva
08 Jan, 2016
New York City

Stock in Europe moved higher on Friday but market indexes registered losses weekly losses of as much as 6%. German industrial production declined 0.3% in November, while the U.K. trade deficit narrowed. Glencore wins antitrust court ruling in the U.S.

[R]4:00 PM Frankfurt – Stock in Europe moved higher on Friday but market indexes registered losses weekly losses of as much as 6%. German industrial production declined 0.3% in November, while the U.K. trade deficit narrowed.[/R]

European markets recorded gains on Friday after the Chinese market rebounded from the sharp losses earlier in the week.

Despite the bounce today, European markets are set to finish the first trading week in 2016 with losses between 4% and 6% as concerns over the slowdown of the Chinese economy intensified and triggered a global sell-off.

In Shanghai, China, the SSE Composite rose 1.97% today after a trading halt prevented steeper losses on Thursday.

In Germany, the largest European economy, industrial production unexpectedly contracted 0.3% in November, compared to an increase of 0.5% in October, according to the German ministry of economy.

Manufacturing output was down 0.8%, construction output increased 1.6% and energy output was up 2.5% from the previous month, the ministry said.

In France, industrial production declined 0.9% in November from the previous month, according to Insee statistics agency.

The decline was mainly due to slowdown in energy, water and extractive industries, while manufacturing grew slightly.

In the U.K., the trade deficit narrowed in November, partially due to the fall in the price of oil imports.

The deficit was £3.2 billion in November, down from £3.5 billion from October, according to the U.K. Office for National Statistics.

In London, FTSE 100 index gained 43.87, or 0.74%, to 5,997.95 and in Frankfurt the DAX index was up 92.82, or 0.93%, to 10,072.67.

In Paris, CAC 40 index added 21.39, or 0.49%, to 4,424.97.

Despite the Friday gains, the FTSE and CAC 40 indexes are poised for a weekly loss of 4%, while the DAX index is set to decline 6% for the week.

Credit Suisse Group AG was down 1.5% to 20.16 Swiss francs after the bank restated its financial results in accordance with the restructuring announced in 2015.

The new results reflect six different units based on geography and business type, while the previous reporting method was based on two divisions, private and investment banking.

The restatement doesn''t affect the bank''s consolidated results.

ARM Holdings Plc fell 1.45% to 954 pence on concerns about slowing shipments of iPhone 6S and 6S Plus.

On Thursday, Apple suppliers Cirrus Logic and Qorvo slashed their revenue estimates for the third quarter.

Standard Chartered Plc jumped 1.8% to 515 pence on the announcement that Deputy CEO Mike Rees is leaving the bank in April after 26 years of service.

Royal Dutch Shell Plc tumbled 2.5% to 1,426 pence and its potential $51 billion acquisition of BG Group received an endorsement of major shareholder advisory firm Institutional Shareholder Services.

ISS recommended investors to vote in support of the acquisition because even a downturn in oil markets would not undermine the strategic benefits of the deal.

Shareholders will vote on January 27 for the acquisition and if the deal is approved Shell will become the largest liquefied natural gas trader.

Glencore Plc jumped 2.9% to 80.97 pence after a U.S. judge on Thursday dismissed antitrust charges against affiliates of Goldman Sachs, JPMorgan Chase, and Glencore for conspiring to boost zinc price.