Plus   Neg

European Shares Extend Slide Amid Risk Aversion


European stocks were notably lower on Wednesday as weak commodity prices, worries over a possible U.S. government shutdown and U.S. President Donald Trump's comments that he plan to transfer his country's embassy to Jerusalem dented risk appetite and fueled demand for safe-haven assets.

The pan-European Stoxx Europe 600 index was down 0.7 percent at 383.90 in late opening deals after declining 0.2 percent in the previous session.

The German DAX was down as much as 1.1 percent and France's CAC 40 index was declining 0.6 percent while the U.K.'s FTSE was little changed with a negative bias.

British insurance and travel specialist Saga plunged 24 percent after a profit warning.

Furniture retailer Steinhoff plunged 62 percent after its CEO Markus Jooste resigned with immediate effect on allegations of irregularities in the company's accounts that require further investigation.

The recent correction in copper prices on worries over rising inventories and doubts about Chinese demand pulled down mining stocks, with Anglo American, Antofagasta, BHP Billiton and Rio Tinto falling between 0.7 percent and 1.1 percent.

Glaxosmithkline was little changed and Novartis fell about 1 percent after the Australian Competition and Consumer Commission said it would take local units of both the companies to court over false or misleading representations in the marketing of pain relief gels.

Swiss nutrition, health and wellness giant Nestle SA edged up marginally after it agreed to buy privately-held Atrium Innovations from a group of investors led by Permira Funds for US$2.3 billion in cash.

Novo Nordisk rallied 4 percent on receiving FDA approval for a diabetes drug.

Airline EasyJet rose about 1 percent on reporting an 8 percent growth in passenger traffic for November.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT