By Sara Sjolin and Carla Mozee, MarketWatch
European stock markets ended a choppy session in the red on
Friday after disappointing U.S. data sent the euro firmly higher
and weighed on exporters.
The Stoxx Europe 600 shaved off 0.4% to close at 396.45, ending
the week with a 0.9% weekly loss.
The index had opened in positive territory, building on a 0.6%
gain from Thursday when European Central Bank President Mario
Draghi underlined that ECB's measures to stimulate the eurozone
economy
(http://www.marketwatch.com/story/draghi-ecb-to-keep-stimulus-as-long-as-needed-2015-05-15)
"will stay in place as long as needed for its objective to be fully
achieved on a truly sustained basis."
However, in afternoon action, the pan-European benchmark--along
with most country-specific indexes--was sent firmly lower after
data showed U.S. consumer sentiment unexpectedly slid to a
seven-month low
(http://www.marketwatch.com/story/consumer-sentiment-tumbles-to-seven-month-low-2015-05-15)
in May.
The weak reading was seen as further cementing that a Federal
Reserve rate hike is off the table in June, sending the dollar
(http://www.marketwatch.com/storyno-meta-for-guid)(DXY) lower and
keeping it on track to finish lower against the euro for a
fifth-straight week. The euro (EURUSD) jumped to $1.1440 from
$1.1410 late Thursday in New York.
Other markets: The lackluster U.S. data and stronger euro hit
particularly Germany's DAX 30 index , which is skewed heavily
toward export-driven companies. The German benchmark lost 1% to
11,447.03, with shares of Volkswagen AG , down 2.3%, K+S AG , off
2.8% and BMW AG , 2.5% lower, among biggest decliners.
France's CAC 40 fell 0.7% to 4,993.82, while the U.K.'s FTSE 100
slipped 0.2% to 6,960.49. In London, SABMiller PLC (SBMRY) shares
gained 0.7% after the maker of Peroni and Miller Genuine Draft said
it's moving into the U.K. craft beer market by purchasing Meantime
Brewing Company
(http://www.marketwatch.com/story/sabmiller-buys-uks-meantime-brewing-2015-05-15).
The terms of the deal for Greenwich, London-based Meantime weren't
disclosed.
Other stock movers: Energy shares lost ground alongside oil
prices
(http://www.marketwatch.com/story/oil-prices-slips-on-dollar-strength-2015-05-15)(CLM5)
. Among shares, oil-services firm Seadrill Ltd. (SDRL) fell 10%,
producer Tullow Oil PLC fell 2.3% and oil giant Royal Dutch Shell
PLC (RDSB) fell 1.4%. Crude futures were on track for their ninth
consecutive weekly rise.
Roche Holding rose 1.8% after the Swiss drug maker showed
positive results from trials related to treating lung cancer.
Bonds: European bond markets appeared calmer on Friday in the
wake of Draghi's comments. German bond prices were higher, edging
the yield on the 10-year bund down 8 basis points to 0.63%,
although it remains higher than recent record low of 0.05%. French
10-year debt on Friday was yielding 0.91%, down 8 basis points.
"Recent volatility in bond markets and the recent bounce in
member-state bond yields have kept risk assets on the back foot
over the past week," said Brenda Kelly, head analyst at London
Capital Group, in a Friday note. Read: 4 reasons why the bond
market is going wild.
(http://www.marketwatch.com/story/4-reasons-why-the-bond-market-is-going-wild-2015-05-12)
(http://www.marketwatch.com/story/4-reasons-why-the-bond-market-is-going-wild-2015-05-12)Equities
were whipped around this week as a selloff in European bonds ramped
up, pushing yields on debt to levels that were last seen before the
ECB launched its bond-buying spree.
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