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European Stocks Close Mixed as Euro Hits 3-Year High

By Investors Hub

European stocks are little changed on Friday as the euro continued its ascent against the dollar to hit a three-year high amid signs that the European Central Bank may wind down its 2.55 trillion euro ($3.07 trillion) bond purchase scheme this year.

German politicians reached a breakthrough in talks aimed at forming a new coalition government, helping support underlying sentiment to some extent.

While the German DAX Index has edged down by 0.1 percent, the U.K.?s FTSE 100 Index and the French CAC 40 Index are both up by 0.2 percent.

In economic news, French consumer prices increased at a steady pace in December, final data from statistical office Insee showed.

Consumer price inflation climbed an annual 1.2 percent in December, the same pace as seen in November and in line with the flash estimate.

Technology company Smiths Group has rallied in London after the company said the net impact of the new U.S. tax legislation would be favorable for the company over the medium term.

GKN has also soared after the British engineering and aerospace group rejected a 7 billion pound takeover bid from Melrose.

Fiat Chrysler Automobiles NV has rallied after the automaker unveiled plans to shift production of Ram heavy-duty pickup trucks from Mexico to Michigan in 2020.

Meanwhile, Kering shares have fallen after the French luxury goods company said that it proposes to distribute PUMA shares to shareholders through a distribution in kind.

Societe Generale has also declined after the French bank said U.S. tax reform would result in a charge of $307 million to be recorded in the fourth quarter of 2017.

Germany’s Bayer has dropped after reducing its direct interest in Covestro from 24.6 percent to 14.2 percent.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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