Stock Market News (European Open) – European stocks post short-lived losses on failed German coalition talks; Asian shares weaken
November 20, 2017 12:28 pm
In Asia, Tokyo’s Topix Index declined by 0.20%, while the Nikkei 225 was trading 0.60% lower amid losses on Wall Street due to tax uncertainties in the US and a stronger yen. Chinese stocks rebounded despite the PBOC unveiling new regulations to mitigate financial risks in the asset management industry after investors realized that the new rules would take effect at a gradual pace. Hong Kong’s Hang Seng index gained 0.21%. The Shangai Composite index climbed by 0.28%. In Australia, the S&P/ASX 200 index was down by 0.10%.
In Europe, the German Chancellor, Angela Merkel, failed to reach a compromise on a three-way coalition government with the ADP and the Greens during the weekend after the liberal ADP decided to pull out of the negotiations due to disagreements on key topics. This might lead to new elections in the country if negotiations between Merkel’s CDU party and the Green party collapse, putting Merkel’s political position in danger.
In the wake of the developments, the German Dax benchmark inched lower by 0.20% but it managed to recover soon after. Moreover, encouraging news from the Swiss-based drug company Roche gave a lift to the Pan-European STOXX 600 index, pushing it up by 0.35%. The Stoxx 50 gained 0.40%.
In particular, Roche shares were boosted by 5.6%, making it the best performer in the Swiss Market index after the company announced that its immunotherapy mixed with other treatments could be an important step in treating lung cancer. Moreover, its haemophilia agent Hemlibra succeeded in reducing bleeds in a new group of patients, adding further gains to the company’s shares.
In other European company news, Volkswagen said on Saturday that it would invest 22.8 billion euros in its main brand over the next five years.
Allianz, the world’s fourth-largest German insurer claimed that it is well protected from takeover actions saying that “whoever wants to buy a company like Allianz with a market value of more than 85 billion euros ($100 billion) would still have to pay a premium too”. This came after the Chinese Anbang Insurance Group and HNA Group expressed their interest to buy into Allianz this year as part of their strategy to widen their shares in the global financial markets.
The UK’s FTSE 100 was mainly flat, reversing earlier losses after the reports that the British government was planning to make a larger divorce bill offer to the EU ahead of the EU summit next month.
In Asia, Tokyo’s Topix Index declined by 0.20%, while the Nikkei 225 was trading 0.60% lower amid losses on Wall Street due to tax uncertainties in the US and a stronger yen. Chinese stocks rebounded despite the PBOC unveiling new regulations to mitigate financial risks in the asset management industry after investors realized that the new rules would take effect at a gradual pace. Hong Kong’s Hang Seng index gained 0.21%. The Shangai Composite index climbed by 0.28%. In Australia, the S&P/ASX 200 index was down by 0.10%.
In Europe, the German Chancellor, Angela Merkel, failed to reach a compromise on a three-way coalition government with the ADP and the Greens during the weekend after the liberal ADP decided to pull out of the negotiations due to disagreements on key topics. This might lead to new elections in the country if negotiations between Merkel’s CDU party and the Green party collapse, putting Merkel’s political position in danger.
In the wake of the developments, the German Dax benchmark inched lower by 0.20% but it managed to recover soon after. Moreover, encouraging news from the Swiss-based drug company Roche gave a lift to the Pan-European STOXX 600 index, pushing it up by 0.35%. The Stoxx 50 gained 0.40%.
In particular, Roche shares were boosted by 5.6%, making it the best performer in the Swiss Market index after the company announced that its immunotherapy mixed with other treatments could be an important step in treating lung cancer. Moreover, its haemophilia agent Hemlibra succeeded in reducing bleeds in a new group of patients, adding further gains to the company’s shares.
In other European company news, Volkswagen said on Saturday that it would invest 22.8 billion euros in its main brand over the next five years.
Allianz, the world’s fourth-largest German insurer claimed that it is well protected from takeover actions saying that “whoever wants to buy a company like Allianz with a market value of more than 85 billion euros ($100 billion) would still have to pay a premium too”. This came after the Chinese Anbang Insurance Group and HNA Group expressed their interest to buy into Allianz this year as part of their strategy to widen their shares in the global financial markets.
The UK’s FTSE 100 was mainly flat, reversing earlier losses after the reports that the British government was planning to make a larger divorce bill offer to the EU ahead of the EU summit next month.
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