AGL 40.18 Increased By ▲ 0.18 (0.45%)
AIRLINK 127.31 Increased By ▲ 0.27 (0.21%)
BOP 6.58 Decreased By ▼ -0.09 (-1.35%)
CNERGY 4.50 Decreased By ▼ -0.01 (-0.22%)
DCL 8.52 Decreased By ▼ -0.03 (-0.35%)
DFML 41.90 Increased By ▲ 0.46 (1.11%)
DGKC 87.60 Increased By ▲ 0.75 (0.86%)
FCCL 32.56 Increased By ▲ 0.28 (0.87%)
FFBL 65.01 Increased By ▲ 0.21 (0.32%)
FFL 10.26 Increased By ▲ 0.01 (0.1%)
HUBC 109.50 Decreased By ▼ -0.07 (-0.06%)
HUMNL 14.60 Decreased By ▼ -0.08 (-0.54%)
KEL 5.12 Increased By ▲ 0.07 (1.39%)
KOSM 7.57 Increased By ▲ 0.11 (1.47%)
MLCF 41.65 Increased By ▲ 0.27 (0.65%)
NBP 59.71 Decreased By ▼ -0.70 (-1.16%)
OGDC 193.75 Increased By ▲ 3.65 (1.92%)
PAEL 28.21 Increased By ▲ 0.38 (1.37%)
PIBTL 7.74 Decreased By ▼ -0.09 (-1.15%)
PPL 151.98 Increased By ▲ 1.92 (1.28%)
PRL 26.50 Decreased By ▼ -0.38 (-1.41%)
PTC 16.11 Increased By ▲ 0.04 (0.25%)
SEARL 83.50 Decreased By ▼ -2.50 (-2.91%)
TELE 7.65 Decreased By ▼ -0.06 (-0.78%)
TOMCL 35.39 Decreased By ▼ -0.02 (-0.06%)
TPLP 8.11 Decreased By ▼ -0.01 (-0.12%)
TREET 16.00 Decreased By ▼ -0.41 (-2.5%)
TRG 52.70 Decreased By ▼ -0.59 (-1.11%)
UNITY 26.31 Increased By ▲ 0.15 (0.57%)
WTL 1.25 Decreased By ▼ -0.01 (-0.79%)
BR100 9,953 Increased By 69.4 (0.7%)
BR30 30,908 Increased By 307.7 (1.01%)
KSE100 93,785 Increased By 429.6 (0.46%)
KSE30 29,050 Increased By 119.3 (0.41%)
Markets

European stocks turn down after Brexit, trade-driven rally

The pan-European STOXX 600 was down 0.8pc at 0814 GMT. Mining stocks, among the chief barometers of concern ov
Published October 14, 2019
  • The pan-European STOXX 600 was down 0.8pc at 0814 GMT.
  • Mining stocks, among the chief barometers of concern over the Chinese economy.

A three-day rally in European shares halted on Monday as investors assessed the scale of progress from Friday's U.S.-China trade talks and worried that a Brexit withdrawal agreement was still some way off after signs of a major breakthrough.

The pan-European STOXX 600 was down 0.8pc at 0814 GMT, handing back nearly half of a more than 2pc gain on Friday that was its best day since January.

Growing optimism around last week's Sino-U.S. talks and a Brexit agreement had helped the index log its best weekly performance since in February, making some retreat natural. But analysts said nerves over a slowdown in global growth and the Brexit process were still high.

Mining stocks, among the chief barometers of concern over the Chinese economy, shed 2.5pc, leading declines among all European sub-sector trading in the red.

Britain's domestically-focused FTSE mid-caps and Irish stocks, gave up more than 1pc after Friday's 4pc surge.

"It's difficult to remove that investor caution even if we do get resolutions around Brexit and the trade war," said Roger Jones, head of equities at fund manager London & Capital.

"I think we've got to see better earnings and a better macroeconomic picture."

Late on Friday, United States and China outlined the first phase of a trade deal and suspended this week's scheduled U.S. tariff hikes. But existing tariffs remain in place and officials on both sides said much more work is needed before an accord could be agreed.

Tariffs continued to hurt the Chinese economy, with data showing a further contraction in exports and imports in September.

Swiss pharmaceutical companies Roche Holding AG and Novartis AG dropped more than 1pc each, and were the biggest drags on the main index, after a report that the United States was considering tariffs on Swiss pharmaceutical products.

Bank stocks were also big fallers, down 1.79pc, as euro zone bond yields fell due to cautious investors pouring into fixed income.

In a bright spot, Sophos Group jumped 36.5pc as Private equity firm Thoma Bravo said it would take the British cybersecurity company private in a deal valuing the company at about $3.8 billion.

Comments

Comments are closed.