EUROPE MARKETS: European Stocks Hampered By Losses For Tech Shares

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12/05/2017 | 11:17 am


By Carla Mozee, MarketWatch



Provident Financial leads losses on regional benchmark; Tesco upgraded



European stocks fell into the red Tuesday, on course for their third loss in four sessions, with technology shares taking their cue from a selloff on Wall Street.



What markets are doing: The Stoxx Europe 600 fell 0.2% to 386.78, led by health care and tech shares. But consumer goods and services and utility shares led advancing sectors. The benchmark on Monday rose 0.9% .



Germany's DAX 30 index fell 0.2% to 13,027.33 after Monday's surge of 1.5%, its biggest daily rise since Nov. 1, according to FactSet data.



France's CAC 40 fell 0.2% to 5,378.46 and Spain's IBEX 35 gave up 0.3% to 10,183.90. But the U.K.'s FTSE 100 rose 0.2% to 7,356.22.



The euro traded at $1.1842, down from $1.1865 late Monday in New York.



What's moving markets: The tech sector was in focus after the group was beaten down during Monday's U.S. trading session, leaving the Nasdaq Composite Index down 1.1%. The selloff in techs stretched into the Asian trading session and into European dealings. The Stoxx Europe 600 Technology Index fell 0.4%.



The moves came on the heels of this weekend's passage in the U.S. Senate of the Republican-sponsored proposal for an overhaul in the tax code .



The "U.S. tax-cut inspired sector rotation saw further dumping of technology [stocks] -- profit taking, less perceived benefit -- in favor of more growth sensitive and value names including banks, retail and materials," said analysts at Accendo Markets in note.



The House and Senate now must agree on a single tax bill before it can be sent to President Donald Trump to sign into law.





Also



Investors were also keeping tabs on the Brexit process, with reports the U.K. Prime Minister Theresa May will return to Brussels to continue talking with European Union officials. On Monday, May and European Commission President Jean-Claude Juncker said they hadn't been able to reach an agreement on some Brexit issues.



There had been reports that an agreement on avoiding a post-Brexit hard border between the Republic of Ireland and Northern Ireland was getting close, but the deal was reportedly shot down by Northern Ireland's Democratic Unionist Party. The DUP struck a support deal with May's party earlier this year.



British officials have been working to settle some issues before EU leaders meet at a summit on Dec. 14-15.



Stock movers: In the tech sector, shares of software maker Temenos Group AG (>> Temenos Group) fell 4%, chip maker AMS AG (>> ams) lost 2.2% and Logitech International SA (>> Logitech International) fell 2.1%.



Provident Financial PLC shares (>> Provident Financial) stumbled 12% as the company said the U.K. Financial Conduct Authority has launched an investigation into its car-financing unit, Moneybarn .



Tesco PLC (>> Tesco) (>> Tesco) climbed 4.3% after Goldman Sachs raised its rating on the supermarket chain to buy from sell.





Stocks mentioned in the article : Temenos Group, Provident Financial, Tesco, ams, Logitech International
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