EUROPE MARKETS: European Stocks End At 3-week Low; Renault's Stock Tumbles On Ghosn Report

By Mark DeCambre, MarketWatch

Renault shares closed 8.4% lower after CEOs Carlos Ghosn's arrest

European markets squandered early gains and ended lower on Monday amid nagging political worries and a slide in shares of a key auto maker after the board at alliance Renault Nissan said it would oust Chairman Carlos Ghosn.

What are markets doing?

The Stoxx Europe 600 closed 0.7% lower at 355.11, marking its lowest finish since Oct. 26, according to Dow Jones Market Data, after notching a weekly loss of 2.2% on Friday.

The French CAC 40 ticked 0.8% lower to wrap up at 4,985.45, marking its lowest level since Oct. 30, following a weekly slip of 1.6%. Meanwhile, Germany's DAX 30 ended the session down 0.9% at 11,244.54, notching a fourth consecutive decline. The German bourse booked a 1.6% weekly decline on Friday.

The U.K.'s FTSE 100 slipped 0.2% to end at 7,000.89, after it produced a weekly drop of 1.3%.

The euro rose to $1.1435, compared with $1.1418 on Friday in New York, while the pound was last trading at $1.2840, up from $1.2833 in the previous session.

What drove the market?

U.K. Prime Minister Theresa May apparently survived the weekend without a direct challenge to her leadership, as she attempted to follow through with contentious plans to see Britain's exit from the European Union. The prime minister has warned that attempts to oust her would only delay Brexit efforts in a Sky News interview (https://news.sky.com/story/theresa-may-tells-rebels-threatening-a-leadership-challenge-they-may-delay-or-stop-brexit-11557192).

Elsewhere in Europe, investors continue to watch developments between Italy and the EU. According to recent reports, Deputy Prime Minister Matteo Salvini said eurozone reform due to be presented by France and Germany are unlikely to get Italy's backing (https://www.euronews.com/2018/11/19/italy-unlikely-to-back-franco-german-euro-reform-plans-salvini).

Rome and Brussels are locked in a protracted battle that threatens the stability of the eurozone because the country's budget plans run afoul of the European Commission's fiscal rules.

Stock movers

Monday trade was colored by developments around Renault SA(RNO.FR) after its CEO, Carlos Ghosn, was arrested and Nissan Motor Co. Ltd. (NSANY) said it planned to out him, citing misconduct (http://www.marketwatch.com/story/nissan-to-remove-ghosn-after-misconduct-probe-2018-11-19). The development was weighing on shares of French-listed Renault. Shares of Renault finished down 8.4%.

(END) Dow Jones Newswires

November 19, 2018 14:03 ET (19:03 GMT)

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