European shares snap 3 days of losses, but worst week in months
* Euro zone STOXX up 0.6 pct;
* Indexes not recouping Thursday losses
* Fresenius in worst fall ever, drags DAX into red
* Weak Wall Street weighs
(Updating prices, adding detail)
By Julien Ponthus and Josephine Mason
LONDON, Dec 7 (Reuters) - European shares staged a small
recovery on Friday snapping three days of heavy losses, but
stocks notched up their worst week of losses in two months amid
growing worries that the U.S.-China trade row may erupt again
and slowing global economic growth.
The euro zone's STOXX index closed up 0.6 percent
but near the session lows as tech losses on Wall Street weighed
even as oil rallied and a tepid U.S. jobs report tempered some
expectations for fast U.S. interest rates hikes.
"Volatility is high and investors are twitchy. It was been a
dreadful week for European markets, and today’s positive move
can’t mask the previous losses," said David Madden, market
analyst at CMC Markets UK.
Germany's DAX, with its big exposure to the trade war, has
joined the long list of indexes or stocks to fall into bear
territory in 2018. It was the only major bourse to close in the
red on the day.
Car makers, which are most vulnerable to trade
worries, were up only 0.1 percent after falling more than 4
percent during the previous session.
Oil and gas stocks led the gains after OPEC and its
Russia-led allies agreed to slash oil production by more than
the market had expected even amid pressure from U.S. President
Donald Trump to reduce the price of crude.
In M&A news, Finnish retailer Amer Sports jumped
9 percent to the top of the STOXXE after a consortium led by
China's Anta Sports launched a takeover bid valuing
the company at 4.6 billion euros ($5.23 billion).
A glimpse of optimism was provided by the market debut of
Britain's AJ Bell. The investment platform provider
bucked a trend of lacklustre European initial public offerings,
with the shares rising more than 37.5 percent.
Germany's Fresenius was the biggest loser, down 17
percent for the healthcare company's worst performance on record
after its profit warning.
Fresenius Medical Care shares were down 8.5 percent, with
both dragging the DAX down 0.21 percent.
Spain's Sabadell dipped 0.2 percent after its
chairman said the bank planned an eventual merger or sale of its
TSB unit once it has returned the British bank to profitability.
Associated British Foods shares fell 4.6 percent to
the bottom of the FTSE 100 after reporting that trading at its
Primark fashion chain was challenging in November.
"If Primark is struggling, what chance does the rest of the
high street have?" said Neil Wilson, analyst at Markets.com.
(Reporting by Julien Ponthus and Josephine Mason; editing by
Helen Reid, Larry King, Richard Balmforth)
First Published: 2018-12-07 10:40:06
Updated 2018-12-07 18:57:50
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