Arm Holdings soars 7.8% on reports of new Microsoft system
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — European stock markets were struggling to commit to a third day of gains on Wednesday, as investors awaited key U.S. economic growth data, while technology and utilities stocks gained.
The Stoxx Europe 600 index (ST:STOXX600 281.07, -0.04, -0.01%) fell 0.03% to 281.03. The index closed up 1% in the prior session.
“A quiet session looks likely ahead, with stock indexes hinting investors are not ready to define a near-term directional bias until revised third-quarter U.S. GDP figures cross the wires in afternoon trade,” said Ilya Spivak, currency strategist at Daily FX.
Economists polled by MarketWatch are expecting third-quarter gross domestic product to be revised up to 3% from a prior estimate of 2.5%. The data are due at 8:30 a.m. Eastern.
Mining and oil stocks moved lower, especially in London.
The FTSE 100 index (UK:UKX 5,947, -5.22, -0.09%) fell 0.1% to 5,944.78, with a 1.2% fall for Xstrata PLC (UK:XTA 1,494, -12.50, -0.83%) and a 1.1% fall each for Essar Energy PLC (UK:ESSR 578.50, -6.50, -1.11%) and Cairn Energy PLC (UK:CNE 410.00, -5.00, -1.21%) .
Shares of ARM Holdings PLC (UK:ARM 439.40, +35.90, +8.90%) jumped 7.8% on media reports that Microsoft Corp. (MSFT 28.07, +0.26, +0.93%) will announce a new version of its Windows operating system that runs on technology provided by ARM.
In Germany, shares of Infineon Technologies AG (DE:IFX 7.21, +0.07, +0.92%) rose 1%.
The German DAX 30 index (DX:DAX 7,077, -1.08, -0.02%) was mostly flat at 7,075.26. Shares of airline Deutsche Lufthansa AG (DE:LHA 16.80, +0.14, +0.84%) rose 1.1%, recovering some ground as harsh wintry weather disrupted flights across Europe and the U.K. in recent days.
Utility stocks continued to gain as that harsh weather continued, with shares of National Grid PLC (UK:NG. 569.50, +5.50, +0.98%) up 1.2% in London and Veolia Environnement SA (FR:VIE 22.50, +0.13, +0.56%) up 0.5% in Paris.
The French CAC 40 index (FR:PX1 3,925, -2.93, -0.08%) fell 0.1% to 3,922.47.
The Greece ASE Composite (XX:COMPO 1,459, +9.45, +0.65%) fell 0.2% to 1,455.74. After the close of markets on Tuesday, Fitch Ratings Service warned it could downgrade Greek debt to junk status from its current BBB- rating. The review is expected to be completed in January, with Fitch due to look at the country’s fiscal sustainability, economic outlook, and reform efforts by the government.
