Fiat, miners help limit losses in European shares (updated)

Chocoladefabriken Lindt & Spruengli AG

21/08/2017 10:22

* STOXX 600 down 0.3 pct, euro zone blue-chips down 0.6 pct 
    * Fiat Chrysler jumps 3.5 pct as Chinese carmaker approaches 
    * Maersk tops STOXX after selling oil unit to Total 
    * Miners provide floor for benchmarks as metal prices soar 
 
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    By Helen Reid 
    LONDON, Aug 21 (Reuters) - European stocks fell further 
early on Monday as geopolitical jitters trickled over from Asian 
trading, though carmaker Fiat Chrysler and mining stocks helped 
limit losses. 
    The pan-European STOXX 600  .STOXX  fell 0.3 percent, with 
euro zone stocks  .STOXXE  and blue-chips  .STOXX50E  down 0.5 
to 0.6 percent.  
    Falls followed a fragile Asian session which saw investors 
shed risky assets as joint U.S. and South Korean military drills 
began.  urn:newsml:reuters.com:*:nL4N1L704X 
    The risk-off move in Europe hit banks  .SX7P  the hardest, 
down 0.8 percent with ING  INGA.AS  and French lenders Societe 
Generale  SOGN.PA , BNP Paribas  BNPP.PA  and Credit Agricole 
 CAGR.PA  among top losers. 
    After recent losses, the STOXX 600 was down 6 percent from 
its mid-May 20-month peak. 
    Strong metals prices helped cap benchmark losses, however, 
with mining stocks  .SXPP  up 0.3 percent after London zinc rose 
to its highest in a decade on robust Chinese demand for steel. 
 urn:newsml:reuters.com:*:nL4N1L71UD 
    Deal-making also boosted a few of the best-performing 
stocks. 
    Fiat Chrysler  FCHA.MI  shares jumped 3.2 percent after 
Chinese carmaker Great Wall  601633.SS  asked for a meeting with 
the Italian carmaker with the aim of making an offer for all or 
part of the auto group.  urn:newsml:reuters.com:*:nL4N1L72K4 
    Fiat's shares have gained more than 13 percent in the past 
week since rumours first emerged that a Chinese buyer may be 
interested in the firm. 
    Maersk  MAERSKb.CO  gained 4.1 percent to lead European 
stocks after the firm agreed to sell Maersk Oil to French oil 
major Total  TOTF.PA  for $7.45 billion.  urn:newsml:reuters.com:*:nL8N1L70VI 
    "We see the deal as free cash flow neutral over 2018/19, and 
accretive thereafter as capital expenditure falls closer to $500 
million per annum," analysts at RBC Capital Markets said. 
    Total shares on the other hand pulled back 0.7 percent.  
    With the second-quarter European reporting season drawing to 
a close, 60 percent of companies have either beaten or met 
expectations, though share price reactions have been muted 
overall. 
    "In isolation the results appear quite good," said Barclays 
analysts looking back at the earnings season.  
    "However investors appear disappointed that the results were 
not as good as the record-breaking first quarter season," they 
added, saying concerned investors taking profits could be behind 
the lukewarm reaction in share prices.  
    Swiss chocolatier Lindt & Sprungli  LISN.S  gained 1.4 
percent after UBS upgraded it to a buy, saying its premium 
product offering helps it benefit more from lower cocoa input 
costs than peers. 
    "Despite a trend towards healthy snacking, Lindt's sales 
growth should be stronger than the market assumes, given its 
products are perceived as an indulgence," UBS analysts added. 
 
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European sector performance 2017    http://reut.rs/2fX4Y26 
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 (Reporting by Helen Reid; Editing by Kit Rees) 
 ((Helen.Reid@thomsonreuters.com; +44 20 7542 0402;)) 
 
Keywords: EUROPE STOCKS/