Dipo Olowookere
By Investors Hub
European stocks are trading lower on Tuesday as a planned 4.1 billion euro private equity takeover of drug maker Stada proved unsuccessful and General Motors (GM) lowered its outlook for U.S. new vehicle sales in 2017.
Regional markets recouped some early losses after the Bank of England released its latest financial stability report and said banks have to raise their capital requirements to cover potential losses in the event of a financial downturn.
Meanwhile, ECB President Mario Draghi said in a speech at a conference in Sintra, Portugal, that a considerable degree of monetary accommodation is still required for underlying inflation pressures to build up.
Investors also looked ahead to Federal Reserve Chair Janet Yellen’s speech later in the day for additional clues on whether the U.S. central bank will hike rates going forward.
While the U.K.’s FTSE 100 Index has dipped by 0.2 percent, the German DAX Index is down by 0.7 percent and the French CAC 40 Index is down by 0.8 percent.
Stada has tumbled after private equity groups Bain Capital and Cinven failed to secure enough shareholder acceptances to take over the German generic drug maker.
Department store Debenhams has also come under pressure after it reported falling sales in the 15 weeks to June 17th amid volatile trading, sparking fears about a slowdown in consumer spending.
