European stocks trade cautiously higher; Renault’s stock falls on Ghosn report

European markets edged higher Monday but gains were capped by nagging political worries and a slide in shares of a key auto maker after the board at alliance Renault Nissan said it would oust Chairman Carlos Ghosn.

What are markets doing?

The Stoxx Europe 600 SXXP, +0.02% gained 0.2% at 358.37, after notching a weekly loss of 2.2% on Friday.

The French CAC 40 PX1, -0.05% ticked 0.1% higher at 5,031.22, following a weekly slip of 1.6%, while Germany’s DAX 30 DAX, -0.16% was trading at break-even levels at 11,348.55. The German bourse booked a 1.6% weekly decline on Friday. The U.K.’s FTSE 100 UKX, +0.40% advanced 0.6% to reach 7,058.86 after it produced a weekly drop of 1.3%.

The euro EURUSD, +0.1401% rose to $1.1435, compared with $1.1418 on Friday in New York, while the pound GBPUSD, +0.1403% was last trading at $1.2840, up from $1.2833 in the previous session.

What drove the market?

U.K. Prime Minister Theresa May apparently survived the weekend without a direct challenge to her leadership, as she attempted to follow through with contentious plans to see Britain’s exit from the European Union. The prime minister has warned that attempts to oust her would only delay Brexit efforts in a Sky News interview.

Elsewhere in Europe, investors continue to watch developments between Italy and the EU. According to recent reports, Deputy Matteo Salvini said eurozone reform due to be presented by France and Germany are unlikely to get Italy’s backing.

Rome and Brussels are locked in a protracted battle that threatens the stability of the eurozone because the country’s budget plans run afoul of the European Commission’s fiscal rules.

Stock movers

Monday trade was colored by developments around Renault SA RNO, -10.08% after its CEO, Carlos Ghosn, was arrested and Nissan Motor Co. Ltd. 7201, -0.45% said it planned to out him, citing misconduct. The development was weighing on shares of French-listed Renault. Shares of Renault were down 8.4%.

 

/reuters.com

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