European stocks see faltering start to 2018 as autos weigh
* STOXX 600 down 0.2 pct
* Autos stocks dented by weaker French car registrations
* Mining sector back up, builds on impressive run
* IAG deal to buy Niki assets weighs on Lufthansa
* Wednesday's MiFID launch in focus
(Adds details, updates prices at close)
By Helen Reid and Kit Rees
LONDON, Jan 2 (Reuters) - European stocks faltered at the
start of the trading year on Tuesday as autos stocks fell and
strength in the euro weighed, while trading was cautious ahead
of the launch of a major reform of European Union financial
The pan-European STOXX 600 index dipped 0.2
percent, as did euro zone stocks.
Autos stocks were 0.1 percent lower, dented by
weaker car registrations data.
New car sales in France fell 0.51 percent in December and
the share of new diesel cars dipped below 50 percent for the
first time since 2000.
A trader also pointed to a report in Britain's Daily
Telegraph citing forecasts that UK car registrations data, due
out on Friday, would show a 5 percent decline in new car sales.
Schaeffler fell 4.9 percent, while BMW
and Volkswagen were both around 0.5 percent lower,
recovering early losses slightly.
Basic resources stocks also bounced back from early declines
with the sector index rising 1.2 percent.
The mining sector built on the five-year high it reached at
the end of last week, riding a wave of rising copper and other
base metal prices.
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.
More broadly, trading volumes in European equities remained
muted as traders came back from holidays and ahead of the launch
of new rules for the region's financial markets.
In other eye-catching moves, Lufthansa slipped 1.4
percent after British Airways owner IAG 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.
"The circa 20 planes not acquired through Niki are a loss
but not significant for the Lufthansa investment case from our
point of view," said Bernstein analysts.
Germany-listed shares in South African retailer Steinhoff
surged 10 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 wind turbine maker Vestas Wind up 2.6
percent after the company secured several new orders.
The Danish bank said a flurry of new orders and less
uncertainty in the U.S. market indicated activity in 2018 could
be higher than expected.
(Reporting by Helen Reid,; Editing by Matthew Mpoke Bigg and Ed
First Published: 2018-01-02 08:32:29
Updated 2018-01-02 19:30:12
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