European Stocks Fall Sharply to 2-Month Low
By Investors Hub
European stocks have fallen sharply to two-month lows on Tuesday as a slew of profit warnings coupled with an escalating trade spat between the world’s two biggest economies soured investors’ appetite for risk.
While the U.K.?s FTSE 100 Index has fallen by 0.6 percent, the French CAC 40 Index and the German DAX Index are down by 1.3 percent and 1.4 percent, respectively.
Carmakers are among the major losers on concerns that more U.S. tariffs on car imports could be on the horizon.
Netherlands-based telecom operator Altice has fallen on reports that it may sell a stake in its telecom towers business to private equity firm KKR.
Department stores group Debenhams has also moved notably lower in London after issuing another profit warning for the third time this year.
Similarly, Footasylum shares has plunged after the footwear retailer noted that trading since the beginning of the new financial year has been impacted by the widely documented weak consumer sentiment on the high street.
In economic news, the euro area current account surplus declined to a 10-month low in April, the European Central Bank reported.
The current account surplus fell to 28.4 billion euros in April from 32.8 billion euros in March. This was the lowest surplus since June 2017.
Meanwhile, European Central Bank President Mario Draghi said the bank will remain patient in determining the timing of the first interest rate increase and will take a gradual approach to adjusting policy thereafter.
At a conference in Sintra, Portugal, Draghi said the bank stands ready to adjust all instruments as appropriate to ensure that inflation continues to move towards the target.