European Stocks Slip as Swedbank Slashes Dividend

By Investors Hub

European stocks have moved modestly lower on Wednesday as trade worries resurface and investors await cues from the U.S. earnings season. The U.K.?s FTSE 100 Index, the German DAX Index and the French CAC 40 Index are all slipping by 0.2 percent.

U.S. President Donald Trump has threatened to impose tariffs on another $325 billion worth of Chinese goods, saying the U.S. still has a long way to go to conclude a trade deal with China.

In addition, robust U.S. retail sales data released overnight helped lower expectations of an interest rate cut by the U.S. Federal Reserve.

Sweden’s Swedbank has moved sharply lower after slashing its dividend. Shares of Ericsson have also slumped after the networking and telecom company warned on its gross margin going ahead.

Energy stocks have also moved to the downside after oil prices fell sharply overnight on data showing a smaller-than-expected decline in inventories.

On the other hand, chip equipment maker ASML Holding has soared after posting better than expected quarterly results.

Specialty biopharmaceutical company Orphan Biovitrum has also jumped after forecasting full-year profit and sales growth.

Dialog Semiconductor has also rallied. The chip designer said it now sees higher-than-anticipated profitability and revenues in the second quarter.

In economic news, Eurozone consumer prices rose by a revised 1.3 percent year-on-year in June, slightly faster than the 1.2 percent rise in May, according to final data from Eurostat. The flash estimate showed steady growth of 1.2 percent.

U.K. consumer prices increased 2 percent year-on-year in June, the same pace of growth as seen in May and in line with expectations.

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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