European indices closed mixed with subdued moves away from flattish levels. Switzerland was an underperformer, finishing down ~1% on weakness in the pharma space. Indices did rebound somewhat post the US market adding to Friday’s gain. On the session, there was an even split of Stoxx 600 sectors up vs down with Tech remaining in the lead, up 1.5%. Retail, Travel, Basic Resources, and Media names all closed better than a percent while Healthcare fell 80 bps.
Energy names in the region were split with the sector flat despite oil higher today. This morning Saudi Arabia was reported to be planning to lower crude exports by 7.1M bpd with a view toward moving oil to $80.00. Earlier Goldman lowered their FY19 price expectations for prices citing global oil surpluses and US shale production.
The pharma space was weaker with some focus on President Trump’s tweet that drug companies have not adhered to their pledge to lower prices. Firms with heavy exposure to the US include AstraZeneca -1.4%, Novartis -2%, Roche -1.2%, and Sanofi -2%.
From earlier: BT Group +.3%, Deutsche Telekom +.1%, Siemens -1.3%, Alstom -2%.
Confidence readings are due out tomorrow in Europe along with German Industrial Production. Home price moves are expected in the UK with France seen as having a larger trade deficit.