European Stocks Advance on Day of Ups and Downs as Autos Climb

On a day when Europe’s equity benchmark swung between gains and losses at least 25 times, an advance in carmakers helped it close higher.

Auto-related shares posted the best performance of the 19 industry groups on the Stoxx Europe 600 Index, rising for a fourth day. Daimler AG added 1.2 percent. Fiat Chrysler Automobiles NV rose 3.9 percent after reaching a tentative agreement with the United Auto Workers union in the U.S. to avert a strike. Credit Suisse Group AG led banks lower, sliding 3.6 percent after the Financial Times reported that the Swiss lender is preparing a substantial capital raising plan.

The Stoxx 600 added 0.2 percent to 361.61 at the close of trading, after earlier rising as much as 0.3 percent and falling 0.6 percent. The gauge also struggled to sustain an intraday advance yesterday, after rallying the previous two sessions. Investors are awaiting company earnings announcements and minutes of the Federal Reserve’s September meeting — due after market close — for further cues on corporate and economic health. The equity measure had tumbled as much as 18 percent from an April record through Sept. 29 amid uncertainty over the trajectory of U.S. borrowing costs and China-fueled worries about global growth.

Shares fell earlier after a report showed that German exports slumped in August the most since January 2009, evidence that Europe’s largest economy isn’t immune to the effects of weakening global trade. In a further sign of euro-area strain, French business confidence unexpectedly worsened.

Among stocks moving on corporate news, Koninklijke DSM NV rose 4.1 percent after ABN Amro Group NV upgraded its rating on the life sciences company to buy from sell, citing expectations of improved earnings.

Telefonica SA contributed the most to a decline in a gauge of telecommunications stocks, retreating 1.3 percent after U.K. regulators reportedly expressed concern that the sale of its O2 unit could lead to a decline in service and higher prices.

Coloplast A/S fell 4.1 percent after UBS Group AG cut its recommendation to sell from neutral, citing overly optimistic estimates for growth in two of the company’s main businesses.

Seadrill Ltd dropped 5.3 percent after the offshore driller’s chief executive officer said 2016 would be “ugly,” with a recovery possibly starting in 2017 depending on oil prices. Norsk Hydro ASA fell 2.5 percent.

Deutsche Bank AG lost 1.8 percent. Shares swung between gains of as much as 3.1 percent and a 3.6 percent loss as investors weighed the potential elimination of its dividend against the likelihood that such a move would allow the lender to overhaul its structure without seeking more capital from shareholders.

Source : Bloomberg


U.S. Stocks Fall From Records Amid Slump in Autos, Health-Care

U.S. stocks retreated after the Nasdaq Composite Index closed above 5,000 for the first time in 15 years, as auto and health-care companies slid.

Ford Motor Co. slipped 2.6 percent after a drop in February light-vehicle sales. Health-care companies in the Standard & Poor’s 500 Index lost 1.2 percent, led by biotechnology stocks. Alibaba Group Holding Ltd. fell to the lowest since it began trading in September.

The S&P 500 declined 0.8 percent to 2,100.70 at 12:09 p.m. in New York, and the Dow Jones Industrial Average lost 131.75 points, or 0.7 percent, to 18,156.88. Both gauges closed at records Monday. The Nasdaq Composite fell 0.9 percent. Trading in S&P 500 companies was 14 percent below the 30-day average.

The Nasdaq Composite is 1.6 percent from a record reached in 2000. It has taken two bull markets and more than 4,500 days for the Nasdaq to get close to making up all the ground lost in the dot-com collapse. The index surged 7.1 percent in February, its best month since 2012.

The S&P 500 rose to fresh records four times in February, while the Dow average climbed 5.6 percent for its best month since January 2013. The index also topped its record from December for the first time in 2015.

Source: Bloomberg