EUROPE MARKETS: European Stocks Edge Lower With Yellen Speech Ahead
May 27 2016 - 5:50AM
Dow Jones News
By Carla Mozee, MarketWatch
But best week in six in sight
European stocks slipped Friday, as investors waited for a speech
by U.S. Federal Reserve Chairwoman Janet Yellen that could indicate
whether an interest rate rise is imminent.
The Stoxx Europe 600 shed 0.1% to 348.70, with only the utility
and health care groups showing gains. The index on Thursday edged
up 0.1% for a third straight win
(http://www.marketwatch.com/story/european-shares-waver-as-spanish-banks-slide-oil-stocks-rise-2016-05-26).
The pan-European index was poised for a 3.1% jump this week.
That gain would deliver the benchmark's strongest weekly
performance since April 15, FactSet data show.
Fed speak: Yellen will speak later Friday at Harvard University,
where she will receive the Radcliffe Medal. Investors will watch
for any hints she may offer about a possible interest-rate increase
at the Fed's meetings in June or July. Her appearance is scheduled
for 1:15 p.m. Eastern Time, or 6:15 p.m. London time.
Read:Fed's Yellen may send interest-rate message by not making
one
(http://www.marketwatch.com/story/feds-yellen-may-send-interest-rate-message-by-not-making-one-2016-05-25)
It's "about time that equity markets began to adjust to the
prospect of policy normalization without panicking," said Ian
Williams, economist and strategist at Peel Hunt, in a note
Friday.
"Recent trading sessions have offered some reassurance on that
front, with major indices making progress despite the growing
likelihood of a summer Fed rate hike. Admittedly, much of that
progress has leaned heavily on the energy and financials stocks,"
he said.
Energy shares pushed higher this week as oil prices recaptured
$50 a barrel, although prices dipped below that key threshold
Friday.
Movers: Off the main index, but grabbing attention, was Philips
Lighting (LIGHT.AE) as its shares jumped 8% in their trading debut
(http://www.marketwatch.com/story/philips-lighting-shares-jump-on-market-debut-2016-05-27-44852856).
The IPO on the Euronext Amsterdam follows the sale of Royal Philips
NV's (PHG) 25% stake in its 125-year-old lighting division.
But Banco Popular SA (POP.MC) was at the bottom of the Stoxx 600
for a second straight day. The Spanish lender's shares plunged 26%
Thursday as the company said it's launching a 2.5 billion euros
($2.8 billion) share sale
(http://www.marketwatch.com/story/banco-popular-down-23-on-28-bln-share-sale-news-2016-05-26).
Adidas AG (ADS.XE) shares were off 0.6% after the German
athletics wear maker sold Mitchell & Ness, a U.S. sportswear
company.
Indexes: Germany's DAX 30 lost 0.1% at 10,258.75, and France's
CAC 40 fell 0.2% to 4,503.96.
Italy's FTSE MIB moved down 0.3% to 18,169.01, and Spain's IBEX
35 dropped 0.3% to 9,049.80. The U.K.'s FTSE 100 was off 0.1% at
6,260.75.
Trading volumes may be affected by the late May bank holiday in
the U.K. and the Memorial Day holiday in the U.S., both on Monday.
Read:When do markets close for Memorial Day?
(http://www.marketwatch.com/story/when-do-markets-close-for-memorial-day-2016-05-25)
(END) Dow Jones Newswires
May 27, 2016 05:35 ET (09:35 GMT)
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