European shares are lower for a third straight session Monday, as trade tensions remain elevated and US President Trump’s twitter feed is on overtime. In addition, some disappointing earnings news is also weighing on investor sentiment.
By 1405 BST, the EUROSTOXX 600 was 0.15% lower, while the EUROSTOXX 50 slid 0.18%. Regional bourses are also down. The German DAX lost 0.14%, the French CAC fell 0.50% and the Spanish IBEX was 0.14% in the red.
Trade tensions continue to hurt stock markets
Trade tensions continue to threaten to boil over, as global finance leaders couldn’t achieve agreement over trade at a key meeting over the weekend. Meanwhile, Trump’s threats to hit China with tariffs for all its imports has also unnerved investors.
And that’s not all President Trump has had to say over the weekend.
“To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!,” Trump tweeted overnight.
While his strong comments towards Iran may have been met with pleasure by some, its yet another potential concern for the equity market to monitor, with regards to their investment decisions.
As the flow of equity relevant news remains high, there were also a number of company specific details of note.
Ryanair shares have slid 5.82% to trade at €14.65 after reporting disappointing earnings in the first quarter of the 2018/19 full year. CEO Michael O’Leary said higher oil prices, lower fares due to the timing of Easter and increased wage costs had all worked to weigh on the budget airline’s profits.
Meanwhile, Atos shares are also in the red after the French IT services firm reported H1 revenues that were below expectations. That stock price fall also comes despite the company’s plans to buy US IT firm Syntel Inc for $3.4 billion.
Atos shares are 6.54% lower at €115.10.