European shares down ahead of trade talks
European shares inched down in early trade on Thursday, hit by a batch of bad news for healthcare companies and a series of new twists in the U.S.-China trade war ahead of top-level negotiations starting later in the day.
Danish biosciences company Chr. Hansen hit a one-and-a-halfyear low, sliding to the bottom of the pan-European STOXX 600 index after saying its organic sales growth next year would fall short of long-term guidance.
The benchmark index erased initial gains to drop 0.2% by 0830 GMT Healthcare stocks slipped nearly 1% and were the biggest decliners among the major European sub-sectors.
European equity markets have fallen more than 3% in October as a dismal run of economic data and the threat of a transatlantic trade war added to U.S.-China trade tensions and Britain’s chaotic efforts to leave the EU.
Germany’s trade-sensitive index lagged its peers on Thursday after data showed a steeper-thanexpected fall in August exports, adding to signs that a manufacturing slump was pushing Europe’s biggest economy into recession.
Minister-level trade talks between the United States and China are set to resume for the first time since July as they attempt to end a 15-month trade war that has hurt global growth and dented business confidence.
In the latest turn of events, China urged the United States on Thursday to stop unreasonable pressure on Chinese companies, including Huawei Technologies. The South China Morning Post has reported that the two-day negotiations could be cut short by a day while Bloomberg said late on Wednesday that the United States was weighing a currency pact with China as part of a partial deal. Without significant progress, the next round of U.S. tariff hikes on $250 billion worth of Chinese goods will take effect on the 15 October.
Dutch health technology company Philips lost 8.1% as the firm said it would miss its 2019 target for profit margin improvement because of trade tariffs and poor results at its Connected Care arm.
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