UKX FTSE 100 Index

By Carla Mozee, MarketWatch

Daimler down on emissions report; Reckitt Benckiser disappoints

European stocks struggled to make headway Monday, after the regional market logged its best week in more than a year following the recent selloff.

Traders were searching for a catalyst on what is expected to be a quiet day, with equity markets in the U.S. and China closed for holidays.

Falls in shares of German auto maker Daimler AG and consumer products heavyweight Reckitt Benckiser Group PLC dragged on the pan-European index.

How markets are moving

The Stoxx Europe 600 index shed 0.4% to 379.29, losing its grip on a small gain logged in early trade. The consumer goods sector lost the most, while the financial group led advancing sectors.

The regional benchmark last week leapt 3.3% (http://www.marketwatch.com/story/european-stocks-set-for-best-week-since-2016-alongside-wall-streets-recovery-2018-02-16), to notch its best week since December 2016, according to FactSet data.

On Monday, Germany's DAX 30 index fell 0.3% to 12,412.16, and France's CAC 40 lost 0.3% to 5,268.82.

The U.K.'s FTSE 100 was down 0.3% to reach 7,276.29, and Spain's IBEX 35 was off 0.1% at 9,824.60.

Check out: More investors looking to cut U.K. assets as Brexit uncertainty persists (http://www.marketwatch.com/story/more-investors-looking-to-cut-uk-assets-as-brexit-uncertainty-persists-2018-02-16)

The euro bought $1.2392, little changed from $1.2409 late Friday in New York.

In the fixed-income market, the yield on the 10-year German bund rose 3 basis points to 0.737%, according to Tradeweb. Yields rose when prices fall.

What's driving markets

European stocks were giving back some of Friday's advance, which keyed off moves on Wall Street, although the Dow and S&P 500 eventually closed off session highs and the Nasdaq turned lower.

Analysts have said volumes for European markets will likely be lower than usual on Monday, with U.S. markets closed for the Presidents Day Holiday. In Frankfurt, DAX volume was running at 35 million shares in afternoon trade, according to FactSet data, and average daily volume has been 122.33 million shares over the past 30 days.

Read:Which markets are closed on Presidents Day? (http://www.marketwatch.com/story/which-markets-are-closed-on-presidents-day-2018-02-14)

Global equities last week rebounded from a meltdown earlier this month that yanked the S&P 500 and other major benchmarks from record highs.

What strategists are saying

"Stock markets in Europe are mixed this morning as a lack of a major macro-economic news has left some traders uninspired," said David Madden, market analyst at CMC Markets, in a note.

"Chinese markets were close overnight as the country celebrated Spring Festival, and the U.S. and Canadian stock markets will be closed today as they celebrate Presidents Day and Family Day, respectively. When a number of major players on the markets are closed due to holidays, it is common to see low volatility on those exchanges that are open," he said.

Stock movers

Reckitt Benckiser Group (RB.LN) sank 6.7% as the maker of Lysol, Clearasil and other consumer-goods products posted flat like-for-like 2017 sales (http://www.marketwatch.com/story/reckitt-benckiser-2017-profit-rises-on-weak-pound-2018-02-19), although that was line with guidance that was revised downward over the course of the year.

Daimler (DAI.XE) shares fell 2% after German weekly Bild reported Sunday that the car maker may have used software to help some of its vehicles pass U.S. diesel-emissions tests (http://www.marketwatch.com/story/daimler-may-have-cheated-on-emissions-bild-2018-02-19). Bild cited internal documents from U.S. investigators.

The financial sector was led higher by bank stocks, pushing the Stoxx 600 Bank up 0.3%. That index was looking at a fourth session of gains, with shares of lenders gaining alongside rises in global bond yields.

Monday's gainers included Deutsche Bank AG (DBK.XE) and UBS Group AG , up 2.5% and 0.4%, respectively.

ECB watch

Discussions were reportedly taking place Monday between eurozone finance ministers over who should become succeed European Central Bank Vice President Vitor Constâncio.

A vote due to take place Tuesday was widely expected to see Spain's Economy Minister Luis de Guindos voted in over Ireland's Central Bank Governor Philip Lane.

"Madrid has been pushing hard for this, arguing that Spain is underrepresented at the top of Europe's institutions," wrote Constantine Fraser, political analyst at TS Lombard, in a note last week.

On Thursday, minutes from the ECB's January meeting are set for publication. That account is "something which will give us an idea if the ECB is going to end their tapering program as per the plan," said Naeem Aslam, chief market analyst at Think Markets.

"It won't be long before the market participant would expect the ECB to start talking about the increase in the interest rate. Such an event would be highly bullish for the euro traders," Aslam said in a note.

(END) Dow Jones Newswires

February 19, 2018 08:48 ET (13:48 GMT)

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