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Profit Taking Drags European Shares Lower

By Investors Hub

European stocks have moved mostly lower on Wednesday, as fears over the U.S.-China trade dispute have prompted traders to book some profits after the previous session’s rally.

U.S. President Donald Trump’s optimistic comments on trade talks as well as positive eurozone GDP data have helped to limit the downside to some extent.

The eurozone’s quarterly economic growth rate doubled in the first three months of the year, the latest figures from Eurostat showed, confirming the initial estimate released late April.

Gross domestic product grew 0.4 percent from the fourth quarter of 2018, when the euro area economy expanded 0.2 percent. The pace of growth was the strongest since a matching rate in the second quarter of 2018.

While the U.K.?s FTSE 100 Index is just below the unchanged line, the French CAC 40 Index is down by 0.6 percent and the German DAX Index is down by 0.8 percent.

Commerzbank has fallen after reports that Italian bank UniCredit has stepped up preparations to bid for the German lender.

Raiffeisen Bank International, ABN Amro and Credit Agricole have also moved notably lower after posting disappointing earnings results.

Leoni, a German cable and harnessing manufacturing firm, has also slumped after it slipped to loss in the first quarter.

French automaker Renault has tumbled after its Japanese partner, Nissan Motor, forecast operating profit for the current year that fell short of analysts’ lowest estimate.

On the other hand, British lender CYBG has rallied after it posted a first-half profit, despite the impact of costs from its acquisition of Virgin Money.

Compass Group has also moved sharply higher after the catering company upped its growth forecasts for the full year.

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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