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European shares try to rebound after global sell-off

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By Reuters
European shares try to rebound after global sell-off
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 13, 2018. REUTERS/Staff   -   Copyright  Reuters Staff(Reuters)

By Julien Ponthus

LONDON (Reuters) – European shares recovered on Friday from its losses during the previous session’s global selloff, but lacked thrust from Wall Street and Asian markets.

By 0925 GMT, the euro zone’s STOXX <.STOXXE> index was up 1.2 percent after falling 3.2 percent during Thursday’s rout, which was triggered by fears the U.S. trade dispute with China would erupt again.

Futures for U.S. indexes S&P 500 <ESc1> were trading 0.4 percent lower, after ending the previous session down but well above their session lows.

“European markets have had a dreadful week with the FTSE100 having its worst day since the Brexit referendum, while the DAX fell into a bear market, over 20 percent down from its record highs of earlier this year”, said Hewson, an analyst at CMC Markets.

Car makers <.SXAP>, which are most vulnerable to trade worries, were up only 0.2 percent after falling more than 4 percent during the previous session,

Traders were focussed on a U.S. jobs report due later on Friday. The data should shed light on the health of the economy and the pace at which the Federal Reserve will raise interest rates.

A glimpse of optimism was provided by the market debut of Britain’s AJ Bell <AJBA.L>. The investment platform provider bucked a trend of lacklustre European initial public offerings, with the shares rising more than 9 percent.

Germany’s Fresenius <FREG.DE> was the biggest loser, down 10.5 percent and set for the worst day since 2002 after the healthcare company issued a profit warning.

Fresenius Medical Care shares are also down 5.9 percent, with both dragging the DAX down to just a 0.5 percent gain.

Spain’s Sabadell <SABE.MC> dipped 0.4 percent after its chairman said the bank planed an eventual merger or sale of its TSB unit once it has returned the British bank to profitability.

Associated British Foods <ABF.L> shares fell 2.5 percent after reporting that trading at its Primark fashion chain was challenging in November.

“If Primark is struggling, what chance does the rest of the high street have?” said Neil Wilson, analyst at

(Julien Ponthus; editing by Helen Reid, Larry King)