UK, French, German Shares Fall on Fresh Worries

January 17, 2019
UK, French, German Shares Fall on Fresh Worries

By Investors Hub

European stocks have fallen in cautious trading on Thursday, with renewed U.S.-China trade tensions, weak results from French bank Societe Generale and concerns over the partial government shutdown in the U.S. keeping investors worried.

U.S.-China trade tensions resurfaced after media reports suggested the U.S. is pursuing criminal charges against Huawei for alleged theft of trade secrets.

While the U.K.?s FTSE 100 Index has slid by 0.7 percent, the French CAC 40 Index is down by 0.5 percent and the German DAX Index is down by 0.3 percent.

STMicroelectronics has moved notably lower after Taiwan Semiconductor forecast a nearly 14 percent drop in first-quarter revenue.

Media firm ITV has also slumped as Bank of America Merrill Lynch downgraded its rating on the company?s stock to Underperform from Buy.

Deutsche EuroShop has fallen in Frankfurt. The company said it anticipates a negative pre-tax valuation result of about 61 million euros in 2018.

French lender Societe Generale has also slid after the bank said its fourth quarter results would be hit by ?disposals and a challenging environment in global capital markets.?

On the other hand, sanitary technology solutions provider Geberit has rallied after it posted 2018 sales in line with expectations.

Software provider Sage Group has also soared in London as it reiterated guidance after a strong start to its financial year.

Primark owner ABF has jumped after reporting a rise in revenue in the Christmas quarter and maintaining its full-year earnings guidance.

In economic news, Eurozone inflation slowed to 1.6 percent in December, Eurostat said, confirming its preliminary estimate released earlier in January.

According to the Royal Institution of Chartered Surveyors, the outlook for the U.K. housing market over the next quarter is the worst in 20 years due to uncertainty about Brexit.

Dipo Olowookere

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.

Mr Olowookere can be reached via [email protected]

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