On 20 February, 2017 – European stocks rose in thin trading

February 21, 2017

US markets were closed on Monday for Presidents Day. The UK market was broadly flat due to a sharp decline in an index heavyweight. Asian markets held ground.
Europe
European stocks scored modest gains Monday, boosted by the strong performance of Royal Bank of Scotland, Rolls-Royce and furniture seller Steinhoff International. Investors also tracked a tightening French presidential race, as well as progress made on debt-laden Greece’s bailout at a meeting of eurozone finance ministers. The Stoxx Europe 600 was up 0.2%, building on last week’s gain of 0.8%. France’s CAC 40 index was down 0.1%, while Germany’s DAX 30 rose 0.6%. The UK’s FTSE 100 index was broadly flat given the sharp drop in Unilever’s shares after Kraft Heinz Co. withdrew its bid for the company.
Meanwhile, shares in Royal Bank of Scotland Group advanced following news that the bank may not sell its Williams & Glyn business. Rolls-Royce Holdings surged after Goldman Sachs analysts upgraded their rating for the engines maker to buy and put the stock on their “conviction” list. Shares in Steinhoff International Holdings rose after it ended deal talks with South African supermarket operator ShopRite Holdings.
Overall trading was somewhat subdued as US markets were closed for Presidents Day.
Asia Pacific
Asian stocks held ground on Tuesday, though Chinese equities surged to a fresh two-month high. With US markets closed on Monday, Asian markets have had few global cues off which to trade.
Chinese stocks led regional gainers, with mainland indexes extending a nearly 7% rise over the last month due to an influx of fresh funds from domestic institutional investors and a brightening outlook for the domestic economy.
Japanese stocks edged up on Tuesday morning as the yen eased back against the US dollar, although trading volumes were low. The Nikkei was up 0.5%, on track for a second straight session of gains. Shares in Nippon Paper Industries surged on reports that it will hike prices of printing paper for the first time since February 2015. Shikoku Electric Power rallied after it raised its operating profit forecast for the year through March 2017. Sumitomo Mitsui Financial Group and Resona Holdings advanced on news that the two banking groups are in talks to merge some of their units. Conversely, shares in Taisei Lamick Co declined after the packaging film manufacturer announced both public and private share placements in order to raise up to 2.12 billion yen.
Looking Forward

The following indicators will be released this week…

Europe

Feb 21

Eurozone