European shares give up early gains on trade worries
European shares gave up early gains on Tuesday as worries about upcoming highlevel U.S.-China trade negotiations build, while the London Stock Exchange was on course for its worst day since 2016 after Hong Kong’s bourse abandoned its bid for the company.
All but one of the major European subsectors were trading lower by 0815 GMT. The technology index was up about 0.2%, buoyed by Nordic telecom companies Nokia Oyj and Ericsson after a report said the U.S. government had suggested issuing credit to help the two companies compete with China’s Huawei.
The United States expanded its trade blacklist to include some of China’s top artificial intelligence startups on Monday, a day after a report said China might not agree on a broad trade deal.
The negative headlines dampened optimism fueled by tariff concessions from both sides last month and kept investors on edge ahead of trade talks scheduled for this week. The pan-European STOXX 600 index slipped 0.3%, with Germany’s tradesensitive DAX among the biggest decliners.
An unexpected rise in monthly industrial output in Germany had earlier provided a shimmer of hope that an expected contraction in Europe’s biggest economy in the third quarter would not be steep.
“There is certainly no reason to give the all-clear, but to breathe a sigh of relief, at least,” said Andreas Rees, economist at Uni-Credit. “After all, it has not become even worse in the already battered German industrial sector.”
Shares of London Stock Exchange Group dropped 6.2% to a near one-month low after Hong Kong’s bourse dropped its unsolicited $39 billion bid for the company.
In an upbeat spot were shares of Airbus, which rose 1.4% after the planemaker reported higher orders for the first nine months of the year, putting it well ahead of U.S. rival Boeing Co.
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