German, French Equities Rise as UK Shares Flops

By Investors Hub

European stocks are turning in a lackluster performance on Monday as the United States ramps up pressure on China before high-level trade talks next week.

Media reports suggested that the Trump administration was considering ways to delist Chinese companies from U.S. stock exchanges and limit U.S. investors’ portfolio flows into China. However, the White House said nothing has been decided on curbing U.S. investments in China.

Chinese manufacturing data topped forecasts and a measure of the unemployment rate in the euro zone dropped in August to its lowest level in more than a decade, helping support underlying sentiment.

While the German DAX Index is up by 0.1 percent and the French CAC 40 Index is up by 0.2 percent, the U.K.?s FTSE 100 Index has edged down by 0.1 percent as the pound rose slightly after the release of GDP data showing that Britain’s economy has grown a little faster than previously thought over the last year.

On an annualized basis, U.K. GDP grew 1.3 percent in the second quarter of 2019, beating expectations for 1.2 percent growth and up from the previous reading of 1.2 percent.

Separately, the Eurozone unemployment rate unexpectedly dropped in August to its lowest level in more than a decade, preliminary data from Eurostat showed.

The seasonally adjusted unemployment rate fell to 7.4 percent from 7.5 percent in July. Economists had expected the rate to remain unchanged.

French building materials company Saint-Gobain has jumped after the company reached an agreement to sell its construction glass activity in South Korea, Hankuk Glass Industries, to Korea-based Glenwood Private Equity.

Swedish Orphan Biovitrum has also moved sharply higher after entering into an agreement to buy U.S. rare diseases specialist Dova Pharmaceuticals.

British home emergency repairs firm HomeServe has also shown a strong move to the upside after RBC raised its rating on the stock.

On the other hand, Dutch telecoms firm Royal KPN has fallen after saying it won’t hire Dominique Leroy as its new chief executive amid an investigation by Belgian authorities into the sale of her shares in former company Proximus.