Markets

European Shares Drift Lower On Trade Worries

(RTTNews) - European stocks were flat to slightly lower on Wednesday as earnings proved to be a mixed bag and the U.K. readied itself for a December 12 general election.

As hopes over a potential U.S.-China trade deal wane, markets now brace for what seems almost assuredly to be a third rate cut in as many meetings of the Federal Reserve later today.

The Federal Open Market Committee announcement is scheduled for 2:00 p.m. ET, followed by a press conference with Powell at 2:30 p.m. ET.

The pan European Stoxx 600 was down 0.1 percent at 398.03 after declining 0.2 percent in the previous session.

The German DAX and the U.K.'s FTSE 100 dropped around 0.2 percent each, while France's CAC 40 index was rising 0.15 percent.

Spanish bank Banco Santander fell over 2 percent after the bank's Q3 net income fell by 75 percent.

Credit Suisse lost 2.7 percent after the Swiss bank said it expects headwinds from the "ongoing challenging geopolitical environment" to persist into the final quarter of the year.

Italian-American carmaker Fiat Chrysler soared 8.4 percent as it confirmed merger talks with French rival PSA. Peugeot shares jumped more than 5 percent in Paris.

Airbus reversed early losses to turn higher. The aerospace company cut its 2019 delivery target to roughly 860 aircraft from a previous forecast of 880 to 890 jets for the year.

Retailer Next tumbled 3 percent after it blamed "unusually warm weather" for a slump in September sales.

Passport maker De La Rue plunged as much as 20 percent after issuing another profit warning.

Standard Chartered rallied 2.3 percent after its Q3 profit topped forecasts.

Smurfit Kappa Group climbed almost 2 percent after reporting an 11 percent increase in EBITDA for the nine-month period ending 30 September 2019.

MorphoSys AG shares rallied 2 percent. The company said the primary endpoint was met of a real-world data study demonstrating clinical superiority of the combination of tafasitamab and lenalidomide compared to lenalidomide alone.

German banking major Deutsche Bank slumped 5.5 percent as it reported an 832 million-euro ($924.35 million) loss in the third quarter, partly due to costs for a major restructuring.

Carmaker Volkswagen rose 0.8 percent after reporting a rise in profit before tax for the nine-month period and backing its FY19 sales view.

Bayer gained 1.4 percent after backing its full-year guidance.

In economic releases, German unemployment increased while the jobless rate remained unchanged in October, data from the Federal Employment Agency showed.

The number of unemployed increased by a seasonally adjusted 6,000 after falling 9,000 in September. Economists had forecast a monthly rise of 3,000.

The jobless rate held steady at 5 percent in October, which was in line with expectations and near a record low.

France's economy expanded more than expected in the third quarter on household spending and investment, while its major counterpart Germany is forecast to enter a mild recession.

Gross domestic product climbed 0.3 percent sequentially, the same pace of growth as seen in the second quarter, the first estimate from the statistical office Insee revealed.

The U.K. economy would be 3.5 percent smaller with the new Brexit deal compared to continued EU membership, the National Institute of Economic and Social Research said in a report.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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