Tesco PLC’s stock tanks after U. K. grocer says 9,000 jobs could be cut as a part of turnaround
European stocks finished firmly lower Monday, as investor jitters return ahead of this week’s Federal Reserve meeting, and earnings disappointment from U.S. heavyweight Caterpillar Inc. weighed on U.S. equities.
Ocado Group PLC OCDO, +2.07% and Marks & Spencer Group PLC MKS, +0.10% stocks rose after a possible technology tie-up was reported.
How did markets perform?
The Stoxx Europe 600 SXXP, -0.97% lost 1% to close at 354.38, after finishing up 0.2% for the previous week.
France’s CAC 40 PX1, -0.76% shed 0.8% to 4,888.58, Germany’s DAX 30 DAX, -0.63% dropped by 0.6% to finish at 11,210.31. Italy’s FTSE MIB Italy index I945, -1.02% fell by 1% to 19,608.13, while the FTSE 100 UKX, -0.91% gave up 0.9% to reach 6,747.10.
The euro EURUSD, +0.0088% rose Monday, fetching $1.1433 from $1.1413 late in New York on Friday.
The British pound GBPUSD, -0.0304% dropped to $1.3142 from $1.3200 seen in late trading in New York on Friday.
What drove the market?
Investors were nervous ahead of scheduled trade talks between the U.S. and China, led by Vice Premier Liu He in Washington later this week, and the Federal Reverse meeting on Wednesday.
After the partial government shutdown in the U.S. came to an end on Sunday, President Donald Trump said he doubts congress will be able to produce a deal over the border-wall funding that he would accept and promised he would build the wall anyway, possibly by emergency declaration.
Meanwhile, heavyweight industrial group Caterpillar CAT, +0.18% in the U.S. missed fourth-quarter earnings forecasts, driving shares down and weighing on Wall Street. Those losses triggered deeper drops for Europe markets.
What stocks were active?
Ocado OCDO, +2.07% gained 2.1% and Marks & Spencer MKS, +0.10% rose by 0.1%, after the Financial Times reported that the retailer and online supermarket were exploring a technology tie up.
Tesco PLC TSCO, -1.73% lost 1.7% after the retailer said up to 9,000 jobs could be at risk as the U.K. grocer plans to close fresh-food counters at 90 of its stores as part of its turnaround effort.
Shares of Atlas Copco AB ATCOA, +2.22% shot up 2.2% after the industrial tool maker posted a forecast-beating 25% rise in fourth-quarter net profit.
Heavyweight miner Rio Tinto PLC RIO, +1.71% climbed 1.7%
In oil stocks, Tullow Oil PLC TLW, -4.29% dropped by 4.3% and BP PLC BP., -2.37% lost 2.4% as oil prices came under renewed pressure.