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European Shares Slip Amidst Brexit Worries

By Investors Hub

European stocks have fallen on Tuesday, as the initial euphoria over the re-negotiated NAFTA deal faded and U.S. President Donald Trump stepped up his trade war with Beijing by saying it was “too early” to negotiate with China.

Brexit worries and renewed concerns about heavily indebted Italy’s budget also dented investors’ appetite for risk.

While the U.K.?s FTSE 100 Index has fallen by 0.3 percent, the French CAC 40 Index and the German DAX Index are both down by 0.7 percent.

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Italian banks Intesa Sanpaolo, UniCredit and Banco BPM have dropped after anti-euro rhetoric from a senior official from Italy’s ruling party sparked a sell-off in the country’s sovereign bonds.

Ferguson shares have also slumped. The British heating and plumbing products supplier has warned of challenging market conditions in the U.K. after reporting better-than-expected full-year trading profit and revenue.

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Royal Mall has also plunged to extend losses after slashing its profit guidance for this year.

Meanwhile, Swedish home appliance manufacturer Electrolux has risen after it acquired SPM Drink Systems, an Italian manufacturer of professional dispensers of frozen and hot beverages and soft ice-cream.

In economic news, U.K. home prices logged steady growth in September, data from Nationwide Building Society showed. House prices grew 2 percent year-on-year in September, the same rate as seen in August. Prices were expected to climb 1.9 percent.

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Survey data from IHS Markit showed the U.K. construction sector unexpectedly grew at the weakest pace in six months in September, as all three sub-sectors lost momentum.

The IHS Markit/CIPS UK construction purchasing managers’ index fell to 52.1 from 52.9 in August. In contrast, economists had expected the index to rise to 53.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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