This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

European Stocks Drift Higher as Traders Bet on Renewed Stimulus

Stocks in this article: DLAKY TSCDY

LONDON ( The Deal) -- European markets drifted upward on Friday, as traders bet on renewed economic stimulus from the European Central Bank in the coming weeks following weaker eurozone data.

Watch the video below for a look at how European markets are doing in midday trading Friday:

WATCH: More market update videos on TheStreet TV

A month-on-month fall of 1.4% in German retail sales in July and continuing falls in Spain, coupled with wholesale price declines in France for industrial and food products, all point to a further decline in inflation. The flash reading of 0.3% for the eurozone consumer price index from Eurostat seemed to confirm that trend. A spate of poor economic figures from Japan, which is still trying to pull itself out of its decade-long deflationary slump, added to the pressure for the eurozone bank to act before Europe enters a similar swoon.

By mid-morning, London's FTSE 100 was up 0.10% at 6,813, while in Paris the CAC 40 was also up 0.10% at 4,370. In Frankfurt, the DAX was up 0.12% at 9,474. Nevertheless, the markets continue to keep a wary eye on developments in Ukraine, and the German market in particular has seen some volatility over the past few days as events there unfold. Moscow's MICEX Composite was down 0.53% at 1,416.

But it wasn't geopolitics as much as geology and industrial relations that left German airline Deutsche Lufthansa  (DLAKY) as the weakest performer in the German blue-chip index. Lufthansa's share slid 1.95% to 13.10 euros in part because of a pilot's strike at its budget subsidiary German Wings, and partly on fears a volcanic eruption in Iceland could disrupt European and transatlantic travel in weeks to come.

In London, the supermarkets were the biggest fallers, after Britain's largest, Tesco (TSCDY) , issued a profit warning, slashed its dividend and brought forward the starting date for its new CEO Dave Lewis. Lewis seems to be following a move set a decade ago by Justin King when he started the role at Tesco rival J. Sainsbury. King also slashed the dividend and announced a big loss to start his planned turnaround with a clean slate. But with consumers rapidly switching from mainstream grocers to discounters, Tesco's recovery may be harder to achieve.

Tesco was down 6.09% at 231.3 pence, Sainsbury's was down 4.48% at 289.90 pence and the already struggling Wm. Morrison was down 4.28% at 178.90.

In Tokyo, the Nikkei 225 closed down 0.23% at 15,424.59, while in Hong Kong, the Hang Seng closed virtually unchanged at 24,742.06. The Shanghai Composite ended the day up 0.97% at 2,217.20.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs