UPDATE 2-WTO trade threats sink European stocks

UPDATE 2-WTO trade threats sink European stocks

Reuters  | Oct 03, 2019 00:57

UPDATE 2-WTO trade threats sink European stocks

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* WTO approves $7.5 bln U.S. tariffs on EU goods
* STOXX 600 gives up most of its Sept gains
* FTSE 100 leads declines across major regions
* Europe Q3 earnings could be worst in 3 years

(Adds details on WTO tariff decision, UK Brexit proposal;
updates prices to close)
By Susan Mathew
Oct 2 (Reuters) - European stock markets dived almost 3% to
log their worst day since last December on Wednesday as the
threat of a transatlantic trade war and dismal economic data
added to fears about a faltering global economy.
Losses in London were the most dramatic, with the FTSE 100
.FTSE seeing its worst session in 3-1/2 years after Prime
Minister Boris Johnson unveiled a final Brexit proposal that
dimmed the chances of Britain leaving the European Union with a
deal. .L
In Europe, Airbus AIR.PA dropped 2% and the benchmark
STOXX 600 index .STOXX gave up almost all of the past month's
gains after the World Trade Organization approved U.S. moves to
slap import tariffs on $7.5 billion worth of European goods.
Global equity markets are already reeling from a prolonged
tit-for-tat battle between Washington and Beijing over trade,
which has showed up this week in sharp falls in manufacturing
sector indicators on both sides of the Atlantic.
"We haven't seen the worst of the trade war impact yet and
of course it's a big impact on (manufacturing in) Europe because
it relies so much more on exports than U.S.," said Andrea
Cicione, head of strategy at TS Lombard.
The losses drove the pan-European index below its 100-day
moving average, seen as a strong technical support level that
could spur further losses.

All of Europe's major markets tumbled more than 2%, with
Italian shares .FTMIB losing 2.9% in their worst session since
December, while French stocks .FCHI gave up a full 3%.
Frankfurt shares .GDAXI fell 2.8% to their lowest level in
a month and have now fallen more than 4% in just two days.
Latest Refinitiv data showed European companies could be set
for their worst quarterly earnings period in three years as
revenue drops for the first time since early 2018. "It's going to be a tough season and the most important
thing will be how the companies view going into Q4 and the early
outlook for 2020, which is shaping up to be a tough year for
markets and corporates," said Neil Campling, analyst at Mirabaud
All eyes are now on the release of service sector data from
the euro zone on Thursday. GVD/EUR
Among the worst performers was French waste and water group
Suez SEVI.PA which dropped 7% after its new chief executive
unveiled a four-year plan to boost earnings but failed to
provide clarity on dividends and planned asset sales.
Flutter Entertainment FLTRE.I was one of the few gainers
on the tumultuous day, up 7% after the company agreed to merge
in an all-share deal with Stars Group Inc (TSG) TSGI.TO , owner
of Poker Stars. Among sectors, oil stocks .SXEP were the biggest drag on
the pan-regional index as prices of Brent crude sank 2.5%. O/R

STOXX 600 records biggest percentage decline since Dec 2018

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Polski Português (Portugal) Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.