DailyFX European Market Wrap: Negative Momentum Continues
European markets start the week on a negative footing, following in the the footsteps of the Asian markets, which saw investors taking a defensive stance in reaction to President Trumps immigration policy.
Over the weekend, Trump signed two executive orders to ban refugees from entering the US and to rebuild the military. Commodity stocks also declined on reports the European Union has decided to impose definitive dumping duties on Chinese steel tube imports.
The euro fell to an 11-day low against the dollar and German government bond yields pared gains after German inflation came in slightly below forecast, easing pressure on the European Central Bank to unwind its stimulus program.
Vodafone is one of the big movers after saying it is in talks to merge its Indian operations with Idea Cellular. Vodafone has been looking to spin off its Indian business but in November it said it would wait for market conditions to stabilize.
Another big mover in London today was British engineering group, WS Atkins. At one stage it was up 7% on reports of a potential $4bln merger approach from US company CH2M. The share price increase boosted Atkins’ market value by almost £100m.
--- Written by Jeremy Naylor, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.