Dipo Olowookere
By Investors Hub
European stocks have moved lower on Tuesday as investors digest weak earnings updates from the likes of Danone, HSBC and BHP and look ahead to the new round of talks between the U.S. and China getting underway in Washington later today.
Meanwhile, China accused the U.S. of fueling cybersecurity fears, thus risking exacerbating tensions between the two countries.
While the German DAX Index has dipped by 0.2 percent, the French CAC 40 Index is down by 0.4 percent and the U.K.?s FTSE 100 Index is down by 0.6 percent.
French food company Danone has dropped after its full-year 2018 net income declined 4.1 percent to 2.35 billion euros from 2.45 billion euros in the previous year.
HSBC shares have also moved notably lower as the Asia-focused lender reported a disappointing annual profit on higher costs. Mining giant BHP has also declined after its first-half profit fell 8 percent.
On the other hand, Wirecard is extending Monday’s rally in Frankfurt after financial regulator BaFi banned short selling in the stock amid reports that German authorities are probing into a possible violation of securities trading rules.
HeidelbergCement has soared after the company forecast higher demand after reporting a 10 percent rise in group revenue for the fourth quarter.
Fashion company TOM TAILOR Holding has also advanced. The company said it would implement a capital increase of 10 percent against cash contribution with partial utilization of the approved capital.
In economic news, the Eurozone current account surplus weakened in December, as the surpluses in the visible trade, services and primary income accounts were partly offset by a deficit in the secondary income account, figures from the European Central Bank showed.
The current account surplus declined to 16 billion euros from 23 billion euros in November, which was revised from 20 billion euros. The visible trade surplus weakened to 16 billion euros from 20 billion euros in the previous month.
Elsewhere, official data showed that U.K. wage inflation as well as the U.K. jobless rate held steady at the start of 2019.
