European stocks slip as trade deadline looms, Saudi Aramco shares open 10% above IPO price

Record ID: 1447662

  • Title: European stocks slip as trade deadline looms, Saudi Aramco shares open 10% above IPO price
  • Date: 11th December 2019
  • Summary: FRANKFURT, GERMANY (DECEMBER 11, 2019) (REUTERS) TRADER AT FRANKFURT STOCK EXCHANGE DAX GRAPH TRADERS BANK SHARES VARIOUS OF TRADERS BOARD SHOWING DAX LOSS OF 0.05 POINTS OR 0.0% TRADERS BOARD TRADERS DAX GRAPH (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "Saudi Aramco's IPO is a big deal, one of the biggest IPOs in history and it makes people want to have more because it's clear now that they can sell even more. Interest was not particularly big but the reason is probably that investors feared they would not be able to buy. Another IPO is in the making and all the big players will participate, also given today's overwhelming success on the first day of trading." JOCHEN STANZL, CMC MARKETS CHIEF MARKET ANALYST FOR GERMANY AND AUSTRIA, WALKING PAST ON FLOOR (SOUNDBITE) (German) CMC MARKETS CHIEF MARKET ANALYST FOR GERMANY AND AUSTRIA, JOCHEN STANZL, SAYING: "I would say the IPO is very important for Saudi Arabia. They have the world's largest oil field, the Ghawar oil field, and we all know that the future of oil is not endless. Now is a good time for this IPO to make money and to invest into the future. A lot of investors said we won't go along with this, we don't want to invest in oil in times of climate change when we are thinking about how to reduce C02 emissions and that this is not a sustainable investment for the future." TRADERS FRANKFURT STOCK EXCHANGE SIGN (SOUNDBITE) (German) CMC MARKETS CHIEF MARKET ANALYST FOR GERMANY AND AUSTRIA, JOCHEN STANZL, SAYING: "There is now additional money flowing into Saudi Arabia, apart from the money we pay to buy oil. It's important for Saudi Arabia to have a financial market which works in order to make sustainable investments for the future. So it's positive that this is happening, but it was mostly Saudi investors who bought so the importance for the domestic market is relatively small. A second IPO is planned by the Saudi royal family, maybe in London, maybe even in Frankfurt and maybe in New York. For now, the IPO is in Riyadh in Saudi Arabia." FLOOR DAX BOARD (SOUNDBITE) (German) CMC MARKETS CHIEF MARKET ANALYST FOR GERMANY AND AUSTRIA, JOCHEN STANZL, SAYING: "Oil continues to be very important for combustion engines and in industrial production. However, its importance has diminished. You can see this with OPEC which lost some of its power and expanded into OPEC Plus which met last Friday, with Russia's participation to keep its power. Because they see that consumer countries which traditionally could not get enough oil are all of a sudden turning to electric and hybrid cars and other alternatives. So the importance (of oil) is diminishing though it is still very, very high." VARIOUS OF TRADING FLOOR
  • Embargoed: 25th December 2019 11:24
  • Keywords: DAX Frankfurt stock exchange IPO Saudi Aramco shares trading
  • Location: FRANKFURT, GERMANY / ABQAIQ & DHAHRAN & RIYADH, SAUDI ARABIA
  • City: FRANKFURT, GERMANY / ABQAIQ & DHAHRAN & RIYADH, SAUDI ARABIA
  • Country: Germany
  • Topics: Economic Events
  • Reuters ID: LVA001B9J5QJ1
  • Aspect Ratio: 16:9
  • Story Text: European shares fell on Wednesday (December 11) as the deadline approached for new U.S. tariffs on Chinese goods, while two major central banks held policy meetings.
    U.S. President Donald Trump has only days to decide whether to impose tariffs on nearly $160 billion in Chinese goods, a move that would exacerbate the long-running trade war.
    The White House's top economic and trade advisers are expected to meet in coming days with Trump over the decision, a source told Reuters, though a final decision has not been made.
    Amid the uncertainty over trade - the overriding focus for investors through the year - the Euro STOXX 600 fell 0.3%.
    The British pound, a high-flier of late, dropped from a seven-month peak after an opinion poll projected a narrower-than-expected victory for the Conservative party in the British election on Thursday.
    In the Middle East, Saudi Aramco 2222.SE shares opened 10% above their initial public offering price in their first day of trading after their record IPO.
    That gave the state-controlled oil company a market value of about $1.88 trillion, comfortably making it the world's most valuable listed company, but well below the $2 trillion price-tag long sought by Saudi Crown Prince Mohammed bin Salman.
    At the Frankfurt stock exchange, one trader said more investors were likely to participate in a second planned IPO after the "overwhelming success" on the first day of trading.
    But another pointed to a lack of enthusiasm for oil on the part of many investors concerned that it is not a sustainable long-term investment at a time of climate crisis.
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