European stocks slip on pessimism over Brexit deal and U.S.-China tensions
By Wed, Oct 16, 2019
A day after hitting their best levels in 16 months, European stocks struggled Wednesday, weighed by concerns over a Brexit deal and fresh signs of tensions between the U.S. and China.
The Stoxx Europe 600 SXXP, -0.13% was flat at 393.63, after finishing Tuesday’s session 1.1% higher at 394.02, its best level since May 22, 2018. Stocks got a boost in part from better-than-forecast U.S earnings.
The German DAX DAX, +0.20% inched up 0.2% to 12,655.37, while the French CAC 40 PX1, -0.14% was flat at 5,697.33. The U.K. FTSE 100 UKX, -0.17% slipped 0.1% to 7,201.08, while the British pound GBPUSD, -0.2503% also fell across the board after EU and U.K. negotiators failed to reach a breakthrough in all-night Brussels talks which will continue today.
Read: Pound slides after report EU refers to Brexit deal as impossible without more U.K. concessions
Efforts to reach an exit-deal for the U.K. ahead of Thursdays EU summit will now go down to the wire. The pound GBPUSD, -0.2503%, which has swung back and forth in recent sessions on Brexit headlines, fell 0.3% to $1.2751 against the dollar.
Losses for Europe also came as U.S. stock futures fell on concerns over rising tensions between Washington and Beijing getting in the way of progress over trade talks. China threatened retaliation against the U.S. if a bill aimed at supporting Hong Kong protesters becomes law.
Earnings were also rolling in for Europe, with chip maker ASML ASML, -0.31% ASML, +2.26% down 0.9% after posting a 7.9% fall in third-quarter profits. Meanwhile, shares of TomTom TOM2, -5.23% slid 5% after the satellite navigation company swung to a net loss in the third quarter.
On the upside, shares of Roche Holding ROG, +0.05% rose 0.5% after the pharmaceutical giant said its outlook is improving as revenue grows.
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