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European Shares Mostly Lower As Brexit Optimism Fades

stockmarkets jan04 16oct19 lt

European stocks slipped into the red on Wednesday as doubts grew over the prospects of a Brexit deal.

Brexit talks are at an impasse as EU and U.K. officials resume Brexit talks later today ahead of a summit of EU leaders on Thursday.

"The fate of Brexit negotiations depend on London moving with technical negotiations having now reached an impasse," Bloomberg reported today, citing sources familiar with talks. The report claims that the negotiations could collapse amid Democratic Unionist Party (DUP) pushback to the proposed deal.

The pan European Stoxx 600 was down 0.3 percent at 392.99 after rising 1.1 percent in the previous session.

The German DAX was rising 0.1 percent while France's CAC 40 index was moving down 0.2 percent and the U.K.'s FTSE 100 was marginally lower.

Rio Tinto dropped 2 percent after the miner cut its bauxite and alumina production forecast for the year.

ASOS shares soared 19 percent. The online retailer said the Group's financial and operating performance has been disappointing during the year to 31 August 2019. Profit before tax declined 68 percent due to substantial transition and restructuring costs.

BMW gained 0.3 percent, Daimler edged up 0.6 percent and Volkswagen rallied 1.4 percent after industry data showed Europe passenger car sales rebounded in September.

Passenger car registrations advanced 14.5 percent year-on-year in September, in contrast to an 8.4 percent decrease in August.

However, the strong growth was driven by a low base comparison as registrations logged a sharp decline in September 2018.

Wirecard AG gained 1 percent. The payments giant said an article published by the Financial Times is a compilation of a number of false and misleading allegations.

The Group noted that Financial Times had raised similar defamatory articles earlier also, which were fully refuted.

In economic releases, Eurozone inflation eased more than initially estimated in September, latest data from Eurostat showed.

Inflation slowed to 0.8 percent in September from 1 percent in August. Price growth was initially estimated at 0.9 percent.

This was the lowest inflation since November 2016, when the rate of price growth was 0.6 percent.

The euro area trade surplus increased in August on falling imports, data from Eurostat revealed.

The trade surplus rose to a seasonally adjusted EUR 20.3 billion in August from EUR 17.5 billion in July.

U.K. consumer price inflation held steady in September while factory gate price inflation was the weakest in three years, separate reports from the Office for National Statistics showed.

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