European Stocks Fall, U.S Futures Drift Lower but FTSE 100 Holds Gains

London (Jan 9)  Britain's FTSE 100 touched an all-time high Monday amid a slump in the pound on foreign exchange markets, contrasting an overall bearish tone for European equities.

Europe's Stoxx 600 Europe Index fell 0.4% to 363.96 points by 10:30 GMT, led by a 0.2% decline for Germany's DAX index.

The weaker overall performance contrasted a 20 point advance for the FTSE 100, which pared gains to around 0.3% after hitting an all-time intraday high of 7,242 points as the pound weakened nearly 1% against the U.S. dollar overnight after Prime Minister Theresa May seemed to suggest in a Sky News interview that Britain is headed for a full withdraw from the European single market. Sterling traded at 1.2137 against the dollar, down about 0.8% from Friday's close and the lowest since Oct. 31.

Germany's DAX slipped 20 points as the benchmark was held down by a 4.2% decline for shares in Lufthansa AG (DLAKY) after Barclays issued a downbeat note on the airline in the wake of its investor presentation last week.

Shares of the German flag carrier traded 5% lower by 10:30 GMT in Frankfurt to change hands at €11.80 each, extending its 52-week decline past 20%. The move also countered a solid drive for Volkswagen  (VLKAY)  shares, which 2.85% to a 52-week high of €147.23 each after reporting better-than-expected 2016 sales.

The DAX's slide masked a solid reading for German exports in the month of November, which saw their biggest increase in four and a half years -- a 3.9% gain -- according to the country's official statistics office, Destatis. The increase came amid a second consecutive monthly gain for industrial output in Europe's biggest economy, which rose 0.4% on the month.

Source: TheStreet