European shares are in the red in the early afternoon Tuesday, as earlier oil-led gains were reversed. Investors, on the look-out for a fresh catalyst, appear to be harking back to ongoing, underlying trade-related concerns.
By 1245 BST, the EUROSTOXX 600 was 0.41% lower, while the EUROSTOXX 50 lost 0.51%. Regional bourses were also in negative territory. The German DAX fell 0.66%, the French CAC was off 0.37% and the Spanish IBEX was 0.53% in the red.
Trade tensions weigh despite positive news
There were a number of positive business announcements earlier Tuesday, that helped buoyed the index shortly after the open.
In addition, the latest German investor sentiment survey from ZEW also proved to be more upbeat than expected. The broader economic sentiment indicator climbed to -10.6 from -13.7 in August. Meanwhile, the current conditions index rose to 76 in September from 72.6 .
“During the survey period, the currency crises in Turkey and Argentina intensified, while German industrial production and incoming orders were surprisingly low in July,” ZEW President Achim Wambach said.
“Despite these unfavorable circumstances, economic expectations for Germany improved slightly,” he added.
However, it appears that a lack of fresh, positive news relating to the US’ trade dealings and also without any new markets-related catalyst for direction, investors are retaining a cautious stance.
There have been some interesting stock movers so far Tuesday.
Among them is a drop in ING shares as the Dutch investment bank announced its CFO would be stepping down. After consulting with the board, Koo Timmermans said he would leave the bank following the money laundering scandal which saw the bank pay a €775 million fine for its shortcomings.
Heineken shares are also in the red, falling 1.54% to €82.04 after investment bank Berenberg analysts downgraded the beverage maker to ‘sell’ from ‘hold’. The bank also cut its 12-month price target to €73 from €82.3.