By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- European stocks lost ground Friday, with
investors remaining cautious after Ukrainian forces were ordered to
cease fire in eastern Ukraine.
Ukrainian President Petro Poroshenko in a statement said
representatives have signed an agreement to halt fighting between
Ukrainian forces and pro-Russia rebels, starting at 6 p.m. Kiev
time. "I hope that these agreements, including cease-fire and
liberation of hostages, will be strictly observed," said
Poroshenko. Russian news agency Interfax reported pro-Russia rebels
also agreed to halt fire.
Poroshenko earlier Friday said he was "cautiously optimistic"
about the peace talks. According to news reports, fighting had
still been taking place near the port city of Mariupol in
southeastern Ukraine.
Although Friday's peace talks had been anticipated, U.S. and
European leaders at a North Atlantic Treaty Organization summit in
Wales still discussed imposing toughen sanctions on Russia over the
Ukraine crisis, and there were signs that some countries could
decide to send weapons to Kiev.
Markets: The Stoxx Europe 600 fell 0.5% to 347.26, but slightly
pared losses as Germany's DAX 30 index turned higher for a 0.2%
gain.
The DAX 30 was on track for a 2.9% weekly advance, a fourth
consecutive weekly win, after Russian President Vladimir Putin this
week said steps had been in place to discuss a resolution to the
conflict, though a Kremlin official stressed Russia hadn't been a
party to the fighting in Ukraine. The Stoxx 600 was in line for a
1.5% weekly gain, which would also be its fourth in a row.
"Ever tougher sanctions against Russia are not good for the
German economy, but this is being offset by a weaker euro, helping
exporters in particular," said Mark Tinker, head of AXA Framlington
for Asia, in a report. "The European equity markets have thus
rallied as the euro has weakened, with emphasis on cyclicals,
financials and exporters."
The euro was looking at roughly 1.3% drop for the week against
the greenback, according to FactSet data. The euro slid to a near
14-month low, trading below the $1.30 level, after the European
Central Bank on Thursday cut interest rates and announced a
"private QE" program in an effort to fight low inflation.
The euro (EURUSD) found a bit of relief Friday, buying $1.2964
compared with $1.2944 late Thursday, as a worse-than-expected
August U.S. jobs report pressured the dollar against major
rivals.
Advancers on the Stoxx 600 were led by Neopost SA after the
mailroom-equipment maker late reiterated its full-year view, and
said it sold $90 million in new debt to a single investor.
Decliners included metals producer Fresnillo and Coca-Cola HBC ,
each down 3.9%.
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