Equities Indices

European shares fall as trade worries remain elevated

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European shares are lower Tuesday, as investor sentiment remains fixated on US-related trade tensions. Meanwhile, Telecom Italia shares are also weighing on indices, following a ratings downgrade.

By 1240 BST, the EUROSTOXX 600 was 0.90% lower, while the EUROSTOXX 50 had lost 1.33%. Regional bourses were also in negative territory. The German DAX was 1.31% in the red, the French CAC fell 1.51% and the Spanish IBEX was down 0.45%.

Trade worries retain centre-stage

Trade tensions between the US and China remain high among investors’ considerations, Tuesday. Caution over the topic remains, amid fears the US could seek to implement further import tariffs on Chinese goods.

Meanwhile, weekend talks between the US and Canada also ended with no deal, suggesting that a global trade war is still very much on the cards.

“There is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out. Congress should not interfere w/ these negotiations or I will simply terminate NAFTA entirely & we will be far better off,” Trump tweeted Saturday.  

“Remember, NAFTA was one of the WORST Trade Deals ever made. The U.S. lost thousands of businesses and millions of jobs. We were far better off before NAFTA – should never have been signed. Even the Vat Tax was not accounted for. We make new deal or go back to pre-NAFTA!,” Trump added on Twitter.

Stock movers

While trade remains at the forefront of many investors’ minds, there were still some stock movers of note.

Telecom Italia shares slumped 5.37% to €0.53 after a ratings downgrade from Exane analysts. The investment bank now rates the Telecom Italia stock at ‘underperform’ down from ‘neutral’ as it says the markets are underestimating the threat to the business from fibre-related competition.  

ING shares, meanwhile are 2.52% lower at €11.39, after being fined €775 million by Dutch financial crime prosecutors for its culpability in allowing money laundering to proliferate in its institution during 2010-16.

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