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European Stocks Depreciate as no-deal Brexit Looks Possible

By Investors Hub

European stocks have fallen on Monday as the U.S.-China trade tensions showed little sign of easing and investors factored in a greater chance of a no-deal Brexit.

While the U.K.?s FTSE 100 Index has dipped by 0.2 percent, the German DAX Index and the French CAC 40 Index are both down by 0.2 percent.

The U.K. appears set to crash out of the EU without a Brexit deal due to the “intransigence” of the European Commission, U.K. Trade Secretary Liam Fox said over the weekend.

Chinese state media has unleashed an unusually brutal and personal attack on U.S. President Donald Trump, raising investor concerns that the risks from the U.S.-China trade war will be a drag on overall global growth.

HSBC Holdings has moved lower in London. After reporting a 5 percent rise in first-half profit before tax, the lender said it remains cautiously optimistic for global growth in the remainder of the year.

Italian bank Banco BPM has also come under pressure after its earnings fell short of market expectations due to higher loan loss provisions.

German industrial gases group Linde has tumbled after U.S. regulators raised an unexpected hurdle to its planned tie-up with Praxair.

On the other hand, John Laing Infrastructure Fund has rallied. Dalmore Capital and Equitix Investment Management are set to acquire the company for £1.45bn.

German factory orders declined 4 percent month-on-month in June, reversing a 2.6 percent increase in May. This was the biggest fall since January 2017.

Elsewhere, Eurozone confidence among investors improved to a 3-month high in August as they see signs of relief in the EU’s trade dispute with the US, survey data published by think tank Sentix showed.

The investor sentiment index climbed to 14.7 in August from 12.1 in July. This was the highest score since June.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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