European shares are mixed Tuesday as investors digest the historic summit between the US and North Korea. However, the signed statement is considered vague and little additional detail has been shared.
A variety of company JV news is also working to steer stock movements.
By 1245 BST, the EUROSTOXX 600 was 0.03% higher, while the EUROSTOXX 50 was down 0.07%. Elsewhere, the German DAX lost 0.08%, the French CAC declined 0.17% and the Spanish IBEX was 0.36% in the green.
US-North Korea summit
Ahead of the historic meeting, investors had appeared cautiously positive and managed to shrug off Trump’s dissension at the weekend G7 meeting. Post meeting between Trump and Kim Jong Un, there has been little visible investor response to the summit.
That’s largely due to the vague wording of the agreement signed by both leaders.
“President Trump committed to provide security guarantees to the DPRK, and Chairman Kim Jong Un reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean Peninsula,” part of the agreement read.
Still, the summit was an historic one. And if it leads to calmer relations between the two countries that is a benefit to the financial markets as it should eliminate previous unsettling wars-of-words between then.
Against that backdrop, there has been some interesting business news working to support specific stock moves.
BMW shares are down 0.27% at €85.15, as the German carmaker reported lower sales in May 2018 compared with a year earlier. However, it did report strong demand for its electric vehicles.
Carrefour shares, meanwhile, are 2.36% in the green following the news it has entered an agreement with Google to update it’s digital shopping process. The two anticipate offering a new omnichannel shopping experience by 2019.
Thales shares are trading 0.09% higher as it announces a new JV with Microsoft to develop an ultra-secure Defence Cloud platform, for the armed forces to use.
Ericsson shares, however, have reversed earlier gains, despite almost doubling its IoT devices forecast for 2023 to 3.5 billion from 1.8 billion.