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European Shares Little Changed In Cautious Trade

stockmarkets jan17 07oct19 lt

European stocks were subdued on Monday to extend losses from their sharpest weekly slide this year, as investors nervously awaited U.S.-China talks this week for signs of whether there will be breakthrough on trade.

The high-level trade negotiations are slated to happen in Washington on Oct 10-11, with a Bloomberg report saying that Chinese officials are reluctant to agree to a broad trade deal pursued by U.S. President Donald Trump.

Investors also kept an eye on Brexit negotiations after French President Macron said the U.K. has to the end of the week for final negotiations to demonstrate it has a workable Brexit plan.

In economic releases, official data showed that German industrial orders fell more than expected in August on weaker domestic demand, underscoring concerns of a looming recession in the country.

Factory orders decreased 0.6 percent sequentially, with demand for capital goods down 1.6 percent, the Economy Ministry said.

Meanwhile, Eurozone Sentix investor confidence dropped to -16.8 in October from -11.1 in September. That missed expectation of -13.0.

The pan European Stoxx 600 was little changed at 380.42 after climbing 0.7 percent on Friday. The German DAX and the U.K.'s FTSE 100 were marginally lower while France's CAC 40 index was down around 0.2 percent.

Osram Licht shares slumped 4 percent after Austrian chipmaker AMS said that its takeover bid for the German lighting group had failed. Shares of the latter plunged 7 percent.

Bayer advanced 1.9 percent. The German chemical and pharma major said a pending U.S. lawsuit over claims related to glyphosate-based herbicide Roundup has been delayed until further notice.

Asia-focused lender HSBC Holdings edged down half a percent. The bank is planning up to 10,000 job cuts as part of its cost-cutting measures, the Financial Times reported.

Vodafone Group shares rose over 1 percent. The telecommunications conglomerate has announced the launch of 'Open Radio Access Networks', which has been in development for several years.

SIG shares plunged 16 percent. The building materials firm has forecast significantly lower muted profit for the full year in its specialist distribution and roofing merchanting businesses.

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