European Shares Fall Amidst Political Uncertainty in Italy
By Investors Hub
European stocks have fallen on Friday as U.S.-China trade worries resurface and Italian bonds sink amid heightened political uncertainty after Interior Minister Matteo Salvini of the right-wing League party called for fresh general elections.
U.S.-China trade tensions continue to escalate, with a Bloomberg report saying the White House is holding off on a decision about licenses for U.S. companies to restart business with Huawei Technologies Co.
Meanwhile, British finance minister Sajid Javid announced he would delay a long-planned review of public spending due this year ahead of Brexit, fueling speculation that Prime Minister Boris Johnson is preparing for a snap election.
While the U.K.?s FTSE 100 Index has edged down by 0.1 percent, the French CAC 40 Index is down by 0.9 percent and the German DAX Index is down by 1.1 percent.
German energy utility Innogy has shown a notable move to the downside after reporting a decrease in first half profits. IT systems provider Bechtle has also tumbled after unveiling its second-quarter results.
On the other hand, Hikma Pharmaceuticals has soared after the company raised its full-year revenue forecasts for its generic drug business.
Shares of security contractor G4S have also jumped after its board approved plans to separate its cash solutions business.
In economic news, U.K. GDP fell 0.2 percent sequentially in the second quarter, reversing the first quarter’s 0.5 percent growth, according to the first estimate from the Office of National Statistics.
On an annual basis, the economy grew at a slower pace of 1.2 percent after rising 1.8 percent in the first quarter.
French industrial production fell 2.3 percent month-on-month in June, in contrast to a 2 percent rise in May, statistical office Insee said. This was the biggest fall since January 2018 and was the first drop in three months.
German exports fell by a seasonally adjusted 0.1 percent month-on-month in June, reversing a 1.3 percent rise in May, data from Destatis revealed. The rate came in line with expectations.
Imports climbed 0.5 percent, as expected but in contrast to May’s 0.3 percent decline.