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Europe ends under pressure as pound rally weighs on FTSE; OPEC, Wall Street eyed

December 01
11:07 2017

European equities closed lower Thursday, as market sentiment in the region failed to be lifted by the positive trade seen in the U.S. and in oil.

The pan-European Stoxx 600

(STOXX: .STOXX)

fell 0.33 percent provisionally by the close, with most sectors closing in negative territory.

Looking to bourses, the U.K.’s FTSE 100

(FTSE International: .FTSE)

tumbled 0.9 percent as sterling posted strong gains against the U.S. dollar. France’s CAC 40

(Euronext Paris: .FCHI)

and Germany’s DAX

(XETRA: .GDAXI)

, meanwhile, closed down 0.47 and 0.29 percent respectively.

While Europe closed on a relatively negative note, Wall Street showed a different picture. The

Dow broke above 24,000

for the first time Thursday, with it rising over 180 points by Europe’s close.

Switching back to Europe, telecoms outperformed fellow industries, with the majority of its stocks closing in the black.

Meanwhile, construction & material and basic resources

were the worst performers of the day. Mining stocks, in particular, came under pressure, as nickel prices tumbled some 2.5 percent.

In individual stock news, Swiss bank Credit Suisse rose 2 percent, after it announced plans to boost shareholder returns. Meanwhile, in a CNBC interview, CEO Tidjane Thiam said that policymakers have been handling the

current environment “very well.”

Mediclinic

(London Stock Exchange: MDC-GB)

led the STOXX 600 by the close, finishing up 4.7 percent, after Jefferies upgraded its rating on the stock from “underperform” to “buy”. Euronext

(Euronext Paris: .N100)

followed, soaring 4.2 percent after it announced it would acquire 100 percent of the Irish Stock Exchange, for 137 million euros ($ 162 million).

On the opposite end of Europe’s main benchmark, the Daily Mail and General Trust

(London Stock Exchange: DMGT-GB)

tanked 23.86 percent after reporting a pre-tax loss for the financial year ending in September. Citing impairment charges and challenging market conditions, the owner of the Daily Mail and Mail on Sunday newspapers slumped to near 5-year lows.

Dialog Semiconductor

,

(Oslo Stock Exchange: NHY-NO)

tumbled almost 18 percent after the

Nikkei business daily reported

that

Apple

was designing its own main power management chips, to use in its iPhones, from as early as 2018. According to Reuters, the German firm says the report doesn’t change any business ties it has.

Norsk Hydro

(Oslo Stock Exchange: NHY-NO)slipped 4.5 percent after a strategy update, which showed that while it expects earnings to improve, it foresees an increase in capital expenditure over the coming years, Reuters reported.All eyes on OPEC

Aside from the

Dow rising above 24,000

on Thursday, investors on Wall Street will be paying close attention to tax. With the Senate Budget Committee having approved the Senate’s tax plan earlier this week, this brings the upper chamber closer to a floor vote that is

slated to occur Thursday

. If the upper chamber’s bill passes, the House and Senate would have to work on a new bill they can send to President Donald Trump.

Back in Europe, OPEC ministers and allied producers are meeting in Vienna, Austria on Thursday to decide on oil output policy. On Thursday, OPEC

agreed to extend oil output cuts

until the end of next year. However, Russia and the 14-member cartel were still working out key technical details of an agreement, sources told Dow Jones.

At Europe’s close, Brent crude traded higher at $ 63.65, while U.S. crude rose to $ 57.36. The oil sector closed relatively flat, yet certain stocks posted solid gains in trade, including Tullow Oil.

(London Stock Exchange: TLW-GB)Sterling hit a two-month peak on Thursday, as hopes of a deal next month between the U.K. and European Union escalated. The U.K.’s FTSE was also under pressure, as leading London-listed stocks fell to the bottom of Europe’s benchmarks.

European equities closed lower Thursday, as market sentiment in the region failed to be lifted by the positive trade seen in the U.S. and in oil.

The pan-European Stoxx 600

(STOXX: .STOXX)

fell 0.33 percent provisionally by the close, with most sectors closing in negative territory.

Looking to bourses, the U.K.’s FTSE 100

(FTSE International: .FTSE)

tumbled 0.9 percent as sterling posted strong gains against the U.S. dollar. France’s CAC 40

(Euronext Paris: .FCHI)

and Germany’s DAX

(XETRA: .GDAXI)

, meanwhile, closed down 0.47 and 0.29 percent respectively.

While Europe closed on a relatively negative note, Wall Street showed a different picture. The

Dow broke above 24,000

for the first time Thursday, with it rising over 180 points by Europe’s close.

Switching back to Europe, telecoms outperformed fellow industries, with the majority of its stocks closing in the black.

Meanwhile, construction & material and basic resources

were the worst performers of the day. Mining stocks, in particular, came under pressure, as nickel prices tumbled some 2.5 percent.

In individual stock news, Swiss bank Credit Suisse rose 2 percent, after it announced plans to boost shareholder returns. Meanwhile, in a CNBC interview, CEO Tidjane Thiam said that policymakers have been handling the

current environment “very well.”

Mediclinic

(London Stock Exchange: MDC-GB)

led the STOXX 600 by the close, finishing up 4.7 percent, after Jefferies upgraded its rating on the stock from “underperform” to “buy”. Euronext

(Euronext Paris: .N100)

followed, soaring 4.2 percent after it announced it would acquire 100 percent of the Irish Stock Exchange, for 137 million euros ($ 162 million).

On the opposite end of Europe’s main benchmark, the Daily Mail and General Trust

(London Stock Exchange: DMGT-GB)

tanked 23.86 percent after reporting a pre-tax loss for the financial year ending in September. Citing impairment charges and challenging market conditions, the owner of the Daily Mail and Mail on Sunday newspapers slumped to near 5-year lows.

Dialog Semiconductor

,

(Oslo Stock Exchange: NHY-NO)

tumbled almost 18 percent after the

Nikkei business daily reported

that

Apple

was designing its own main power management chips, to use in its iPhones, from as early as 2018. According to Reuters, the German firm says the report doesn’t change any business ties it has.

Norsk Hydro

(Oslo Stock Exchange: NHY-NO)

slipped 4.5 percent after a strategy update, which showed that while it expects earnings to improve, it foresees an increase in capital expenditure over the coming years, Reuters reported.

All eyes on OPEC

Aside from the

Dow rising above 24,000

on Thursday, investors on Wall Street will be paying close attention to tax. With the Senate Budget Committee having approved the Senate’s tax plan earlier this week, this brings the upper chamber closer to a floor vote that is

slated to occur Thursday

. If the upper chamber’s bill passes, the House and Senate would have to work on a new bill they can send to President Donald Trump.

Back in Europe, OPEC ministers and allied producers are meeting in Vienna, Austria on Thursday to decide on oil output policy. On Thursday, OPEC

agreed to extend oil output cuts

until the end of next year. However, Russia and the 14-member cartel were still working out key technical details of an agreement, sources told Dow Jones.

At Europe’s close, Brent crude traded higher at $ 63.65, while U.S. crude rose to $ 57.36. The oil sector closed relatively flat, yet certain stocks posted solid gains in trade, including Tullow Oil.

(London Stock Exchange: TLW-GB)

Sterling hit a two-month peak on Thursday, as hopes of a deal next month between the U.K. and European Union escalated. The U.K.’s FTSE was also under pressure, as leading London-listed stocks fell to the bottom of Europe’s benchmarks.

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