European stocks see faltering start to 2018 as miners weigh

FAN Editor
The DAX index board is pictured at Frankfurt's stock exchange in Frankfurt
The DAX index board is pictured at Frankfurt’s stock exchange in Frankfurt, Germany December 29, 2017. REUTERS/Ralph Orlowski

January 2, 2018

LONDON (Reuters) – European stocks faltered at the start of the trading year on Tuesday as an impressive run-up in metals and mining stocks reversed, while strength in oil companies and banks was not enough to stop the slide.

The pan-European STOXX 600 <.STOXX> index dipped 0.2 percent in early deals, while euro zone stocks <.STOXXE> fell 0.3 percent.

Basic resources stocks weighed the most, with the sector index <.SXPP> down 0.6 percent. Rio Tinto <RIO.L>, BASF <BASFn.DE> and BHP Billiton <BLT.L> all fell.

The mining sector had surged to a five-year high at the end of last week, riding a wave of rising copper and other base metal prices, but Tuesday’s dip suggested investors were taking profits after a strong run.

Oil, which marked its highest start to the trading year since 2014, supported benchmarks with oil majors across the region rising in concert with crude. Statoil <STL.OL> and Total <TOTF.PA> were among the strongest gainers.

Financials also rose with Santander <SAN.MC> and Unicredit <CRDI.MI> among top banking stocks.

In other eye-catching moves, Lufthansa <LHAG.DE> slipped 6.3 percent after British Airways owner IAG <ICAG.L> agreed to buy Air Berlin’s insolvent Austrian airline Niki.

The German carrier had backed out of a deal to buy Niki’s assets in mid-December due to competition concerns.

Germany-listed shares in South African retailer Steinhoff <SNHG.DE> surged 12 percent to the top of the STOXX, despite the firm saying its 2015 results would also have to be restated. The company also said its internal review of accounting irregularities was progressing.

Broker moves also drove trading: an upgrade to “buy” from Sydbank sent Vestas Wind <VWS.CO> up 2.7 percent after the company secured several new orders.

Europe’s mining sector at five-year high:

(Reporting by Helen Reid; editing by Tom Pfeiffer)

Free America Network Articles

Leave a Reply

Next Post

Not-so-happy new year for UK commuters as fares rise

LONDON –  British commuters are facing stiff increases in rail fares on the first work day of the new year. Continue Reading Below Travelers on Tuesday faced average fare hikes of 3.4 percent, prompting howls from activist groups and London’s mayor amid complaints of unreliable rail service. Anthony Smith, chief […]