Sun, Feb 04, 2018 - Page 14 News List

Strength of euro pushes eurozone markets down

AFP, LONDON

Eurozone stock markets on Friday slumped as the euro continued to pressure the US dollar and traders awaited key US jobs data.

In Frankfurt, Germany, the DAX on Friday fell 1.7 percent to 12,785.16, shedding 4.2 percent from a close of 13,340.17 on Jan. 26.

The German market was also hit by news that the nation’s biggest lender, Deutsche Bank AG, was pushed into the red last year by US President Donald Trump’s tax reforms. Deutsche Bank shares fell 6.21 percent to 13.86 euros.

In Paris, the CAC 40 on Friday lost 1.6 percent to close at 5,364.98, a decrease of 3 percent from 5,529.15 a week earlier.

The pan-European STOXX 600 on Friday fell 1.4 percent to 388.07, falling 3 percent from 400.57 on Jan. 26.

Outside the eurozone, London’s losses were less acute, with the FTSE 100 on Friday falling 0.6 percent to 7,443.43, losing 2.9 percent from 7,665.54 on Jan. 26.

“The global equity sell-off has gathered pace, with European markets taking the brunt of the selling,” IG Group PLC chief market analyst Chris Beauchamp said.

The euro dipped versus the dollar, but kept the US unit pressured ahead of the employment data.

Attention shifted toward US nonfarm payrolls figures due later on Friday, with a strong reading likely adding to talk that US borrowing costs will continue to rise.

“Today’s US payrolls report for January is not expected to undermine the case for higher rates, with expectations of an improvement,” CMC Markets UK analyst Michael Hewson said.

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