This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

European Stocks Flat on Rise in German Unemployment

LONDON ( The Deal) -- European stocks were little changed on Wednesday, as an unexpected rise in German unemployment overshadowed a gain in economic sentiment for the 18-nation eurozone.

In London, the FTSE 100 rose 0.02% to 6,846.42. The DAX in Frankfurt rose 0.09% to 9,949.41, while in Paris the CAC added 0.06% to 4,532.48.

In May, German unemployment rose unexpectedly -- increasing for the first time in five months and causing investor jitters about the pace of recovery in Europe's largest economy.

The number of jobless rose a seasonally adjusted 23,937 to 2.905 million in May, the German Federal Labor Agency said in its latest report out of Nuremberg. Economists surveyed by Bloomberg News before the data had been betting on a drop of 15,000, but the Labor Office attributed the weak numbers to the unusually mild winter, with seasonal jobs starting earlier than usual.

The adjusted jobless rate was steady at 6.7%, its lowest in more than 20 years.

The Labor Report offset positive news from the European Commission, which showed a greater-than-expected rise in executive and consumer sentiment in May in countries sharing the common currency. Specifically, the index rose by 0.7 points to 102.7 in May. A separate report showed a slight increase in the Business Climate Indicator for the euro area.

In London, the biggest decline was posted by GlaxoSmithKline (GSK - Get Report). The stock fell 1.53% to 1,609.5 pence after the pharmaceutical company revealed that it was the subject of a criminal probe in the U.K. in connection with allegations in China that employees bribed medical professionals to boost sales. In a statement, GSK said it's committed to running its business to the highest ethical standards and that it will continue to "cooperate fully" with the U.K.'s Serious Fraud Office.

Shares of Scottish engineering company Weir and Metso, a Finnish maker of mining and construction equipment, also both retreated, after Weir pulled the plug on its sweetened offer valuing the unwilling target at around 4.6 billion euros. Weir had sweetened its bid by 13% in an offer valuing each Metso share at around 30.49 euros, above Metso's 22.75 euros share price March 26, the day before Metso's first proposal.

Weir shares fell 0.77% to 2,584 pence in London, while in Helsinki Metso shed 4.27% to 27.83 euros.

In Switzerland, shares in Nestle got a slight boost after the food giant announced plans to buy commercial rights to a range of skincare treatments from Valeant Pharmaceuticals (VRX - Get Report) for $1.8 billion. The transaction includes global rights for Sculptra anti-wrinkle treatment as well as rights to corrective facial aesthetic treatments Restylane, Perlane and Emervel in the United States and Canada.

In Germany, shares in German fashion retailer Hugo Boss fell 3.35% to 20.22 euros, amid a further sell-down by its largest shareholder, buyout shop Permira.

Permira, which owns the stake through its Red & Black Lux S.a.r.l. investment vehicle, announced late Tuesday that it's placing up to 3.96 million Hugo Boss shares, equal to a 5.6% stake, in an accelerated book building process. The move will increase the stock's free float to around 48% and leave Permira as the largest shareholder with a 55.62% stake.

Hugo Boss said it expects the higher free float to boost the stock's attractiveness among institutional investors and to increase its weighting in Germany's MDAX mid-cap stock index.

Based on the latest trading price, Hugo Boss has a market capitalization of around 7.09 billion euros.

Asian markets were mostly higher, boosted by strong economic data out of the U.S. on Tuesday including a May rise in consumer confidence.

In Tokyo, the Nikkei added 0.24% to 14,671, while in Hong Kong the Hang Seng advanced 0.59% to 23,080.03.

Shares in Sands China fell more than 2% in Hong Kong, a day after Overland Park, Kan.-based fund manager Waddell & Reed Financial Inc. sold a $1.38 billion stake in the Macao-based resort and casino operator and shifted most of its holdings to Sands' parent company, Las Vegas Sands (LVS).

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GSK $41.25 0.00%
VRX $236.12 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs