European Shares Retreat On Trade Worries

asian martket down 121418 08nov19

European stocks fell on Friday to halt a week-long rally as conflicting messages over U.S.-China trade talks unnerved markets, offsetting better-than-expected trade data from China.

Reuters reported that a plan to roll back tariffs on each other's goods in phases has met opposition from some advisers to U.S. President Donald Trump, raising concerns on whether the two sides are really getting close to signing a phase one trade deal.

The pan European Stoxx 600 dropped half a percent to 404.64 after rising 0.4 percent in the previous session.

The German DAX, France's CAC 40 index and the U.K.'s FTSE 100 were down between 0.3 percent and half a percent.

Miners were among the hardest hit. Anglo American tumbled 3.4 percent, Antofagasta lost 2 percent and Glencore declined 2.2 percent.

Lloyd's insurer Beazley Group jumped nearly 6 percent. The company reported that the Group's Gross premiums written for the nine months ended 30 September 2019 increased by 12 percent year on year to $2.19 billion.

Insurer Phoenix Group Holdings dropped 1.8 percent after former Aviva UK boss Andy Briggs has been named as the new chief executive of the company.

Crédit Agricole shares tumbled 3.5 percent despite the French lender delivering third-quarter net profit above expectations.

Tariff-sensitive automakers were losing ground, with Volkswagen, Renault and Peugeot falling between 0.8 percent and 1.5 percent.

Vonovia edged up slightly after the German residential property company announced a mandatory cash offer to the shareholders of Hembla AB.

Insurance and asset management company Allianz lost 2.2 percent after posting muted growth in third-quarter profit.

Swiss luxury goods group Compagnie Financiere Richemont tumbled 5 percent after sales growth slowed in the first half.

In economic news, Germany's exports rebounded at a faster-than-expected pace in September, despite signs of mild recession, data from Destatis revealed.

Exports grew 1.5 percent month-on-month, in contrast to August's 0.9 percent fall. Shipments were forecast to grow only 0.3 percent.

Imports growth accelerated to 1.3 percent from 0.1 percent a month ago, while economists had forecast stagnation.

U.K. hiring activity remained subdued in October, dampened by political and economic uncertainty, the Report on Jobs from IHS Markit showed.

According to Recruitment & Employment Confederation/KPMG report, permanent job placements declined at a solid pace in October, as employers preferred to wait until there was greater clarity over the outlook on Brexit. At the same time, temp billings growth weakened to only a marginal pace.

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