European Equity Benchmarks Close Mixed; Mining, Luxury Goods Stocks Move Lower

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The broad-based major European indices closed mixed in Friday trading as mining and luxury goods stocks weighed down the markets.

In economic news, UK GDP grew 0.6% in Q3, which was its fastest rate since Q4 of 2016, according to the Office for National Statistics ( ONS ).

"The economy saw a strong summer, although longer-term economic growth remained subdued," said Rob Kent-Smith, the ONS' head of national accounts. "There are some signs of weakness in September with slowing retail sales and a fall-back in domestic car purchases. However, car manufacture for export grew across the quarter, boosting factory output."

The ONS also reported that the UK's total trade deficit narrowed by GBP3.2 billion ($4.14 billion) to GBP2.9 billion in the three months to September. It said cars had the single-largest impact on the goods balance due to a combined GBP1 billion rise in non-EU exports and GBP1.7 billion fall in EU imports in the three months to September.

In Germany, the Federal Statistical Office (Destatis) reported that turnover in the main construction industry in August was up 7.5% compared with the same month the previous year. At the end of August the number of persons employed by main construction industry entrepreneurs was up 2.3% compared to a year earlier.

And in France, output decreased sharply in the manufacturing industry in September, according to the Institute for Statistics and Economic Studies (INSEE), falling 2.1% after rising 0.4% in August. Output also fell 1.8% in the whole industry for the month, after increasing 0.2% in August. For the third quarter, manufacturing output increased 0.5% over the previous quarter, and compared to the same quarter last year manufacturing output gained 0.9%

In equities, mining stocks weighed down the FTSE in London as Antofagasta ,Fresnillo, and Glencore fell 4.9%, 4.7%, and 4.4% respectively, while Evraz, Anglo American, BHP Billiton, and Rio Tinto dropped 3.7%, 3.6%, 3.5%, and 3.3%. Luxury goods company Burberry led all decliners, losing 4.9%, while packaging companies DS Smith, Smurfit Kappa Group, and online food ordering company Just Eat were down 4.8%, 4.5%, and 4.3%.

In Frankfurt, airline operator Lufthansa, and semiconductor company Infineon helped the DAX nudged into positive territory rising 4.1% and 3% respectively, followed by financial services firm Allianz, footwear and apparel company Adidas, and personal care company Beiersdorf which climbed 2.7%, 1.4% and 1.2% respectively. Internet company Wirecard was up 1.1%, while reinsurance company Munich Re, and software firm SAP each closed 0.9% higher.

In Paris, oilfield services company TechnipFMC, and luxury goods company Kering led the CAC lower falling 3.8% and 3.5% respectively, followed by steel and mining company Arcelormittal, which dropped 2.4%. Auto parts supplier Valeo, automaker Peugeot, and luxury goods company Louis Vuitton were down 2.2%, 2%, and 1.9% respectively, while oil company Total closed 1.8% lower.

The FTSE fell 0.49%, the DAX gained 0.02%, and the CAC-40 lost 0.48%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks , ETFs
Referenced Symbols: DAX

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