European shares were trading lower around midday Friday, the first day of the final month of 2017. Investor sentiment was hit on news the US tax reform bill vote was delayed, as law makers struggle to agree on amendments.
With the US tax reform bill in focus this week, the delay was a blow to investor sentiment. There’s a possibility the vote could go ahead Friday, but equally, it could still be delayed further.
By 1245 BST, the EUROSTOXX 50 was trading 0.73% lower, while the EUROSTOXX 660 was down 0.51%. The German DAX 30 was off 0.90%, the French CAC 40 was 0.86% lower and the Spanish IBEX was 0.45% in the red.
Investors ignore upbeat Eurozone PMI data
The market could have gained a boost from strong manufacturing data from the latest IHS Markit PMI survey.
However, investors chose to largely ignore the better-than-expected final euro zone manufacturing PMI data which rose to 60.1 in November. That was up from October’s 58.5 and also higher than the preliminary 60.0 reading reported during November.
That was the second-ever highest survey reading, beaten only by the series high achieved in April 2000.
“November’s surveys produced a clean sheet of improved PMI readings for all countries, resulting in the best performance for eurozone manufacturing since the height of the dot-com boom over 17 years ago,” said Chris Williamson, chief business economist at IHS Markit.,
Investors, instead focused on the concern regarding the delayed vote on the US tax reform bill.
“The market’s main focus is now whether the tax bill will pass or not,” said Yutaka Miura, a senior technical analyst at Mizuho Securities in Tokyo, according to a Reuters report.
Banking shares led the European indices lower, Friday. Fallers included:
- Lloyds Banking Group shares fell 1.73% to £64.86.
- BNP Paribas shares were 0.49% in the red at €63.27.
- Barclays shares were off 1.41% at £190.78.
- RBS Group shares were down 1.34% at £272.90.