European shares were in the red around midday Wednesday, as a combination of developments weighed on investor sentiment.
Mixed earnings news, reports the US tax reforms could be delayed by a year and a weaker US dollar, all worked to keep investors cautious.
Close to midday, both the EUROSTOXX 600 index and its blue-chip counterpart, the EUROSTOXX 50, were off some 0.24%.
The German Dax was 0.13% lower, the French CAC was 0.26% in the red, while the Spanish IBEX lost 0.46%.
Company stock fallers
Stocks pushing the indices lower, represented a range of sectors, including financials.
Credit Agricole shares were off 4% as the French bank’s third-quarter earnings results proved a disappointment. Italian banks also weighed. Banco BPM shares fell 5.6%, BPER Banca lost 4.3%, while UBI Banca shares headed 2.5% lower.
Austrian brick maker Weinerberger AG, headed 6% lower. Meanwhile, German retailer Steinhoff lost 4.3% following a Reuters repot the firm hadn’t told its investors about around $1 billion in deals.
There was some positivity, however.
Dutch retailer Ahold Delhaize shares, were 4.8% higher as profits were stronger than expected. Ubisoft gained 9.3% on upbeat earnings results, while shares in German firm Symrise also experienced a solid 3.2% increase, Wednesday morning.
While the company earnings season does help give direction to the financial markets, other details are relevant too.
As such, investors have been hit Wednesday, by reports US President Trump’s proposed tax reforms could be delayed by a up to a year.
The possible delays were reported by the Washington Post Tuesday and suggest a split between the plans laid out by House-based Republicans and how the best result can be achieved, according to Senate representatives’ perspective.
The news has weighed on the US dollar overnight, which lost ground against a number of currencies as investors await clarification of exactly what to expect.