European shares are lower Tuesday, as investor sentiment remains cautious and third quarter earnings misses hurt the broader indices. Political pressures also weigh as euro finance ministers pressure Italy to submit a new budget, while UK PM Theresa May works to gain more support for her Brexit plan, from the cabinet.
By 1510 BST, the EUROSTOXX 600 was 0.19% lower, while the EUROSTOXX 50 lost 0.20%. Regional bourses were also weaker. The German DAX fell 0.01%, the French CAC was 0.31% in the red and the Spanish IBEX lost 0.49%.
Uncertain political backdrop
Ahead of the US midterm vote, investors remain cautious as to the outcome. Eyes are also on the meeting between European finance ministers in Brussels, where pressure is growing on Italy to submit a new budget.
The spending plans in the initial budget submission the country made could see the Italy falling foul of EU budgetary rules.
Meanwhile, Brexit is another ongoing concern. UK PM May is meeting her cabinet Tuesday in the hopes of gaining support from the pro-Brexit group, to help come to an acceptable agreement over the final divorce terms.
Earnings drive some stocks
With investors feeling cautious Tuesday, they sought to punish stock who reported disappointing third quarter earnings updates.
Zalando shares fell after the European online fashion site reported a bigger loss than expected and also cut its full year outlook for 2018, again. Zalando’s CEO said they are “clearly not happy” with the results. The business is working to make its smaller orders more profitable and ensure its returns and re-sale process is less costly.
Zalando shares fell 8.37% to trade at €31.51.
Deutsche Post shares, meanwhile, moved higher after the German-based postal and delivery service said that its 77% profit slump was due to one-off restructuring costs. It added that investment should bear fruit by the end of the year.
Deutsche Post share rose 3.33% to hit €28.85.