Europe stocks stumble as weak oil price,s tarde worries weigh on investors
European stocks fell Wednesday, tracking losses across global markets as oil prices fell and investors were filled with fresh uncertainty over a potential trade deal between the U.S. and China.
The Stoxx 600 SXXP, -0.56% fell 0.5% to 378.74, after a 0.9% gain on Tuesday.
In Germany, the DAX DAX, -0.51% fell 0.6% to 12,086.16, after a 1.3% climb Tuesday.
The U.K.’s FTSE 100 UKX, -0.79% dropped 0.7% to 7,340, on the heels of a 0.5% gain.
Elsewhere, France’s CAC 40 PX1, -0.78% fell 0.7%, nearly reversing a 0.8% gain Tuesday, while Italy’s FTSE MIB I945, -0.70% dropped 0.7%, from a 0.9% gain the prior session.
The pound GBPUSD, +0.1651% was flat at $1.2737, while the euro EURUSD, -0.0353% slipped 0.1% to $1.132.
Renewed concerns over a U.S.-China trade deal damped enthusiasm for global equities after the Dow Jones Industrial Average DJIA, -0.05% broke a 6-session winning streak. Trade-deal optimism had been building ahead of a Group of 20 meeting at the end of the month, but U.S. President Donald Trump admitted Tuesday he was “holding up” a deal between the countries.
Oil was the biggest losing sector in Europe, as heavily weighed companies tracked sharp falls in U.S. CLQ19, -2.77% and Brent crude prices BRNQ19, -2.52%BRNQ19, -2.52% , down over 2% each. That was after a report showing higher U.S. inventories and ahead of a key government report on supplies data due later. Total SA FP, -1.79% fell nearly 2%, while BP PLC BP, +0.62%BP, -2.78%
As well, investors were watching unrest in Hong Kong where thousands of protesters surrounded government headquarters on Wednesday, forcing the delay of a legislative session to vote on a bill that would allow criminal suspects in Hong Kong to be sent for trial in mainland China. Police opened up with tear gas and water cannons to try to disperse those protesters, and Hong Kong stocks HSI, -1.73% tumbled amid the unrest.
Axel Springer SPR, +11.65% surged 11%, making for a top gainer in the Stoxx Europe 600 index, after private equity group KKR KKR, +0.33% announced a $7.7 billion takeover offer for the German media group.
Dassault Systemes SA DSY, -2.02% shares fell 1.6% after announcing a deal to buy U.S. health care software group Medidata Solutions Inc. MDSO, +4.36% in a $5.8 billion deal.
Shares of Spanish retail group Inditex SA ITX, -1.19% fell 1% after posting a better-than-expected net profit rise, but sales that came in below expectations.
Banks were also under pressure across the board, with HSBC Holdings PLC HSBA, -1.23%HSBA, -1.23% dropping 1% and Banco Santander SA SAN, +0.45%SAN, +0.12% fell 1%.
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