Plus   Neg

European Markets Pull Back On Trade Concerns

The majority of the European markets ended Tuesday's session with modest losses. Markets dropped during the first few hours of trade, but recovered some ground in the afternoon after markets on Wall Street staged a recovery.

Traders continue to keep a close eye on trade issues. Reuters reported today that China will ask the WTO for permission to impose sanctions on the United States.

Mark Carney is set to continue as the governor of the Bank of England until the end of January 2020 to support a smooth Brexit and transition, UK Chancellor Philip Hammond confirmed Tuesday.

Hammond made the announcement while speaking at the Parliament. The seven-month extension was agreed in an exchange of letters between the Governor and the Chancellor, the Treasury said in a statement.

The pan-European Stoxx Europe 600 index weakened by 0.06 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.07 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.08 percent.

The DAX of Germany dropped 0.13 percent, but the CAC of France rose 0.27 percent. The FTSE 100 of the U.K. declined 0.08 percent and the SMI of Switzerland finished lower by 0.17 percent.

In Frankfurt, Aareal Bank Group rose 1.53 percent. The banking company has reached an agreement on the acquisition of all shares in Dusseldorfer Hypothekenbank AG, following negotiations with the Association of German Banks or Bundesverband Deutscher Banken e.V.

In Paris, Video game company Ubisoft climbed 4.25 percent after a broker upgrade.

In London, Cairn Energy sank 2.67 percent after it slipped to a pre-tax loss in the first half of the year.

Ashtead Group rallied 5.18 percent. The industrial equipment rental company expanded its share buyback program and boosted its full-year profit outlook, citing a weak pound and a recent acquisition.

JD Sports Fashion, a retailer of sport, fashion and outdoor brand, rose 6.52 percent after delivering record first-half earnings.

ArcelorMittal fell 1.98 percent in Amsterdam. According to Bloomberg, the steel manufacturer has lifted its offer for India's Essar Steel India Ltd. to about 420 billion rupees ($5.8 billion).

Novartis jumped 1.67 percent in Zurich. Alcon, the eye care unit of the Swiss drug major, has announced its plans to locate its future global headquarters in the Canton of Geneva, Switzerland, following completion of its proposed spinoff from Novartis.

Bakery business Aryzta soared 16.44 percent after nominating three new directors to its board.

Shares of Amer Sports Oyj surged 18.79 percent in Helsinki after the company received takeover interest from an investor group backed by a Chinese company.

Eurozone employment increased at a steady pace in the second quarter, data from Eurostat showed Tuesday. Employment increased 0.4 percent sequentially in the second quarter, the same rate as seen in the first quarter. The annual growth also remained unchanged, at 1.5 percent.

German economic sentiment improved more-than-expected to a four-month high in September, despite trade war fears, survey data from the Centre for European Economic Research, or ZEW, showed Tuesday.

The economic sentiment indicator climbed to -10.6 from -13.7 in August, the Mannheim-based think tank said. Economists had expected a moderate improvement to -13.5. The score was the highest since May.

France's payroll employment increased slightly in the second quarter, data from the statistical office Insee showed Tuesday. Net payroll job creation rose 12,500 in the second quarter or zero percent, after rising 47,500 in the previous quarter.

The UK unemployment rate remained unchanged at the lowest since 1975 and wages growth exceeded expectations amid record vacancies, data from the Office for National Statistics showed Tuesday.

The unemployment rate came in at 4 percent in three months to July, according to labor force survey. This was the lowest rate since February 1975 and in line with economists' expectations.

At the same time, the employment rate rose to 75.5 percent in the three months to July from 75.3 percent in the previous year.

Data showed that average earnings including bonuses grew 2.6 percent annually, faster than the expected 2.5 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT